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  • FIRST POST
    • mystic_bertie
    • By mystic_bertie 26th Aug 17, 8:43 AM
    • 487Posts
    • 48Thanks
    mystic_bertie
    Self Employed Contractor - Is It Easy To Get Mortgage?
    • #1
    • 26th Aug 17, 8:43 AM
    Self Employed Contractor - Is It Easy To Get Mortgage? 26th Aug 17 at 8:43 AM
    Hi Folks

    Im 47 and i have had a mortgage in the past. Im renting in ENgland and considering buying a house with a budget of 150k. I have been working as a self employed contractor for a large well known company now for 14 months and recently i received another years contract. Before this i was unemployed for a while and my employment history was not so good. I also work through an agency and they pay my wages. I pay my accountancy firm to do my finances etc.

    How easy is it to get a mortgage with a 10% deposit given my circumstances, it looks like ill be in this job for another few years although there is no guarantee with any job. Can i apply for any mortgage deal i see or should i seek out certain types of lenders than lend to someone like me?
Page 1
    • kingstreet
    • By kingstreet 26th Aug 17, 8:46 AM
    • 31,931 Posts
    • 17,062 Thanks
    kingstreet
    • #2
    • 26th Aug 17, 8:46 AM
    • #2
    • 26th Aug 17, 8:46 AM
    Some lenders will work from your gross contract value, others will treat you as self-employed.

    An independent broker will help you get the most favourable terms from the route which best suits your circumstances.

    Ask friends/relatives for a broker recommendation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • ACG
    • By ACG 26th Aug 17, 9:10 AM
    • 15,394 Posts
    • 7,784 Thanks
    ACG
    • #3
    • 26th Aug 17, 9:10 AM
    • #3
    • 26th Aug 17, 9:10 AM
    I agree with Kingstreet, there will be options.
    Contractors is not something I do many of, but going down the self employed route, there are quite a few options now.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 26th Aug 17, 9:11 AM
    • 9,744 Posts
    • 3,761 Thanks
    amnblog
    • #4
    • 26th Aug 17, 9:11 AM
    • #4
    • 26th Aug 17, 9:11 AM
    As stated.

    Yes, this sounds possible.

    A case for a mortgage broker, don't try and sort it on your own.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mystic_bertie
    • By mystic_bertie 26th Aug 17, 12:29 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    • #5
    • 26th Aug 17, 12:29 PM
    • #5
    • 26th Aug 17, 12:29 PM
    Many thanks for the replies folks. I moved to England just over a year ago and i dont know anyone who can recommend a mortgage broker.

    How do i go about finding one who covers the full market and is fee free, is this what i'm looking for?

    Is it bet to find one locally or is finding one online ok too?

    I have plenty of experience in applying for mortgages in the past so i'm not put off by doing it myself, its just finding the right mortgage provider/ mortgage deal that i need help with.

    Is a broker possible going to recommend to me a mortgage that might also be benefiting them in some way. I got stung by a broker in the past who lied and said the mortgage term was 1 year less that it actually was.
    • ACG
    • By ACG 26th Aug 17, 12:42 PM
    • 15,394 Posts
    • 7,784 Thanks
    ACG
    • #6
    • 26th Aug 17, 12:42 PM
    • #6
    • 26th Aug 17, 12:42 PM
    Moved to England from where?
    If outside of the UK then I would not limit yourself to fee free brokers, when I started out I was fee free - because I was new to the industry and wanted experience.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mystic_bertie
    • By mystic_bertie 26th Aug 17, 1:04 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    • #7
    • 26th Aug 17, 1:04 PM
    • #7
    • 26th Aug 17, 1:04 PM
    Hi thanks for the reply

    I was living in Scotland, i was just referring to the fact i dont know personally of any brokers and i dont have anyone to ask either. Is there an easy way to find a fee free broker or do you have to call and ask and i see locally?
    • ACG
    • By ACG 26th Aug 17, 1:12 PM
    • 15,394 Posts
    • 7,784 Thanks
    ACG
    • #8
    • 26th Aug 17, 1:12 PM
    • #8
    • 26th Aug 17, 1:12 PM
    The bottom of the brokers website will usually state their fees.
    You could type fee free mortgage brokers in (your town/city)?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mystic_bertie
    • By mystic_bertie 27th Aug 17, 8:14 AM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    • #9
    • 27th Aug 17, 8:14 AM
    • #9
    • 27th Aug 17, 8:14 AM
    Ok thanks for the reply. i will do a little research.

    Is it better to find one locally or is there no reason why i cant use a broker i see advertised online.
    • mystic_bertie
    • By mystic_bertie 2nd Sep 17, 5:38 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    I now have a default on my credit history. Its from march 2013. It should not be on there as the original default was Feb 2011 with Barclaycard but then passed on to a recovery company called LINK. They wrongly changed the original default date.

    Does this mean i will not get a mortgage given i have this default?
    • amnblog
    • By amnblog 2nd Sep 17, 6:56 PM
    • 9,744 Posts
    • 3,761 Thanks
    amnblog
    Ask a broker, and expect to pay them to assist you - your case is getting more complex by the week.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mystic_bertie
    • By mystic_bertie 3rd Sep 17, 7:21 AM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    I totally agree with you however is it worth taking this any further given that i have one default?
    • Jenniefour
    • By Jenniefour 3rd Sep 17, 10:32 AM
    • 1,096 Posts
    • 1,065 Thanks
    Jenniefour
    All the more reason to engage a good broker - either they will be able to sort out a mortgage or they can advise on what you need to do to make an application later.
    • LHZ
    • By LHZ 4th Sep 17, 9:40 AM
    • 17 Posts
    • 4 Thanks
    LHZ
    Hey OP. Do you have an accountant who you are happy with? If so, ask him or her to recommend a Mortgage Advisor. I'm self employed and am currently looking to buy my second property as a buy to let. My accountant recommend a local mortgage advisor and he is excellent plus he can talk directly to my accountant to get the low down on my finances.

    By the way, my understanding is that most lenders will take an average of the last two years accounts, less any finance liabilities, to decide how much they will lend you.
    • mystic_bertie
    • By mystic_bertie 5th Sep 17, 2:27 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    Many thanks for the replies folks. I have been in touch with a broker who seems to come highly recommended on another website which is non financial based. I have filled out all my details and he said he will apply and see if it gets approved due to my default. He did also state that because its 41/2 years old then it might not matter too much but we need to apply first and see.

    His fee is £295.
    • mostlynice
    • By mostlynice 5th Sep 17, 6:12 PM
    • 7 Posts
    • 8 Thanks
    mostlynice
    Santander and Halifax happily offer to contractors. All info on their websites. I have a default due to my now ex taking out payday loans in my name without me knowing about it.

    Applied with Santander - sent all requested paperwork including accountants certificate (they don't accept SA032's)

    Took 3 days in total to get accepted
    • mystic_bertie
    • By mystic_bertie 5th Sep 17, 6:58 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    Santander and Halifax happily offer to contractors. All info on their websites. I have a default due to my now ex taking out payday loans in my name without me knowing about it.

    Applied with Santander - sent all requested paperwork including accountants certificate (they don't accept SA032's)

    Took 3 days in total to get accepted
    Originally posted by mostlynice
    It is good to hear you got accepted and especially with a default. Im not sure if the info was up to date but i read the halifax like you to have been in the same contract for 2 years. I have only 15 months in my current role.

    I would apply directly but im worried mortgage applications might harm my credit rating.
    • mostlynice
    • By mostlynice 5th Sep 17, 7:43 PM
    • 7 Posts
    • 8 Thanks
    mostlynice
    I would definitely stick with a broker. They know which lenders allow soft search mortgage applications, and those who don't so there is less of a chance of messing up your file further.
    (Halifax for example allow soft searches - whilst at his stage, it may state you only require 10% deposit, when you hard search this can increase).

    Halifax state they require you to have been in a contract for 2 years, however, if you can prove you were in a similar contract previous to this one, you will be fine.

    Santander on the other hand are totally different. They require an accountants certificate. No proof of current contracts. They only require turnover.

    You can also ask for a letter off your main contractor/agent stating how long the contract is going to last. This all helps. It is worth noting, that whilst my default was declared at application stage (And some on this board consider it being the devil with it being a Payday Loan default), it was never questioned once. My application took the same amount of time as somebody with a clean history, according to my broker. There is hope for everybody
    • VentureMM
    • By VentureMM 6th Sep 17, 12:21 PM
    • 10 Posts
    • 4 Thanks
    VentureMM
    I don't think you'll have difficulty being accepted based on your job. Many lenders consider self-employed contractors in your situation. Halifax are very good with contractors and would consider someone in your position. The evidence you'd be required to provide would depend on whether or not your employers pay your tax or if you do it yourself. If your employer does then you would only need to provide your latest payslip. If you do it yourself, you would be required to provide a minimum of 1 year's accounts.

    With regards to the default, lenders will look at anything within the past 6 years as this is the length of time it stays on your credit score. So if you say that it occurred in February 2011 then this should not be an issue. Again, Halifax are very good for this as they are less rigid with their lending criteria and more willing to take in to account any reasonable explanation you may provide.
    ___________________________

    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mystic_bertie
    • By mystic_bertie 6th Sep 17, 3:38 PM
    • 487 Posts
    • 48 Thanks
    mystic_bertie
    Thanks for the replies guys. Its all good info and its keeping me feeling more positive about my application.

    I have instructed the broker to go ahead with the applications and so hopeflly i will et some kingd of feednback very soon. I just hope its good news and then i can go house hunting.

    Im used to buying and selling in Scotland. Im in England now. Does a fixed price mean that is the price you pay or can i still offer less? Does offers over mean i need to offer more on the asking price, is offering less likely to be rejected?
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