Contractor Mortgages

wessexw

I posted this on the mortgage forum yesterday and didn't have any luck so trying again here!

I’m wondering if anybody here has experience with contractor mortgages, I’m a contractor and FTB and as such am absolutely paranoid about a mortgage lender pulling out on me at the last minute as a contractor is not so stable as somebody in a permanent job is. I have an AIP with C&G which I sorted out myself directly with the lender and this gives me a very good rate and monthly repayments which I really like the look of (until the rate changes!). I also have the possibility of a mortgage organized for me through a specialist contractor mortgage advisor who has good links with some other lenders however that mortgage is not such a good rate and I would be paying £150-200 more per month than the C&G mortgage

I feel like the advisor arranged mortgage would be the safer bet as they tell me that they have arranged many contractor mortgages with this lender (Clydesdale) and so I feel that they would be less freaked out by the vagaries of contractors when push came to shove than C&G might be, but the C&G mortgage is a much better rate! Part of my AIP for C&G meant that I have already been looked at by their underwriter as I was flagged for some unknown reason when I initially made the application, the underwriter came back saying it was all ok and the AIP was made, don’t know if that makes any difference or if it means sod all.

So I’m wondering what peoples experience with contractor mortgages are and how it all went? I don't know if I'd be overly paranoid by plumping for the Clydesdale and losing out on the nice C&G mortgage?

rich010273

Try contractormoney.

Epiphone

or contractormortgagesmadeeasy.com. Much of a muchness.

sunshinetours

If you have one agreed in principle at a better rate why worry? The underwriters have already looked at it so as long as you complete within the agreed timescale go woth the best deal surely

housebuyer_abc

wessexw wrote: »

I don't know if I'd be overly paranoid by plumping for the Clydesdale and losing out on the nice C&G mortgage?

I got mine through C&G last year when contracting.

The real issue is how long have you been contracting and do your books show consistent income. The banks will want to see three years books and an upward trend.

Contractor Mortgages are always worse in terms of rates, they are a sort of 'self-cert' with proof mortgage - therefore more risky.

wessexw

The funny thing is though with C&G is all they want is a letter from my agency verifying my contracts, nothing about looking back 3 years. I'm with an umbrella company anyway so don't have any 'books' as such. The fact that all C&G want is the letter from my agency worries me to be honest as I wonder how they can lend me money based only on that and my credit record. The Clydesdale one want copies of the last 3 years contracts, bank statements, utility bills etc which to me seems far more proper!

BiggaThanBen

rich010273 wrote: »

Try contractormoney.

ditto

I guess the rate you get through them will be the same as from the bank directly

wessexw

I already tried contractor mortgages and they were rubbish, they couldnt come up with anything for me at all. I came up with far more myself when I rang various lenders directly.

Doozergirl

C&G are well known for being fussy lenders - contrary to popular belief, the old LloydsTSB (of whom C&G belonged) ran on a low risk model!

If you have an AIP then I think you're well on your way especially if the underwriters have looked at it. Ask your mortgage person to check and double check for you exactly what if anything you still have to produce. If it genuinely isn't unrealistic for you to produce what they need then it's probably worth the risk...

BiggaThanBen

wessexw wrote: »

I already tried contractor mortgages

To compare the meerkat .. (c)

Contractor Mortgages and Contractor Money are two different brokers as it looks

wessexw

BiggaThanBen wrote: »

To compare the meerkat .. (c)

Contractor Mortgages and Contractor Money are two different brokers as it looks

Yes, one of them came up with the Clydesdale offer for me - the other came up with a big fat zero!