Mortgage for self employed

Anon234

I after some mortgage advice as I'm totally new to buying a house and at a complete loss.

At present I'm in the first year of running my own ltd company paying tax etc through an umbrella corp. previous to this I was a contractor for 3.5 years. I earn on average 45k a year and have a deposit of 30maybe 35 k to put down on a property. No credit problems

Having spoke to a few relatives they don't think I have a snowballs chance in hell of getting a mortgage because I'm not traditionally employed.

Any advice, I take it I should use a broker as opposed to approaching lenders?

Any advice much appreciated

ACG

Definitely one for a broker.

It will be difficult but i wouldnt say its impossible. See a GOOD broker - ignore estate agent brokers and i would also avoid fee free brokers.

Anon234

ACG wrote: »

Definitely one for a broker.

It will be difficult but i wouldnt say its impossible. See a GOOD broker - ignore estate agent brokers and i would also avoid fee free brokers.

Thanks, I'm not holding out much hope, almost everyone has said it's a no go.

But I will have a ring round brokers and see what's what.

Thanks

ACG

With all respect to your family and friends - everyone has a mate down the pub that knows a little bit about everything... Thinking you know it all is worse than knowing nothing in some cases.

Im not saying its a guarantee as there is nowhere near enough info but having one years accounts it is still possible to get a mortgage so long as you have 20-25% deposit. Having worked for the company previously and possibly having a contract in place may make it easier... it all depends on the full picture - the devil is in the detail but a good broker will investigate the options available.

Anon234

ACG wrote: »

With all respect to your family and friends - everyone has a mate down the pub that knows a little bit about everything... Thinking you know it all is worse than knowing nothing in some cases.

Im not saying its a guarantee as there is nowhere near enough info but having one years accounts it is still possible to get a mortgage so long as you have 20-25% deposit. Having worked for the company previously and possibly having a contract in place may make it easier... it all depends on the full picture - the devil is in the detail but a good broker will investigate the options available.

I have worked in the same place for 4 years now (a bank ironically) and always get a year long contract. The advice I was given was by a mortgage broker family friend . I honestly thought with 30k to put down it would be easier than it is

Thanks for advice, I will contact some brokers,

ACG

Have you spoken to the bank? They may be lenient if your working for them.

If the contract has been renewed atleast once and it has atleast 6 months left to run you should'nt have a major problem.

I dont know how much £30k represents - if its 10% then its going to be more difficult than say 25%.

Anon234

The deposit is round about 20% deposit, I'm looking at 160/170k for a house. So might need a bit more.
Have spoken to the bank I work for but as I'm a contractor they don't view my application any differently to anyone else, despite me working for them. Contract is now on its 4th renewal, and boss was happy to renew again, so no worries on that front.

Parents could act as guarantors if push came to shove but I'm hoping to go it alone

Thanks for advice, it might not be as lost a cause as I thought

ACG

Forget guarantors there arnt many guarantor mortgages available it will limit your options too much.

Id be confident of this going through with a lender based on what you have said on here.

56samba

I used these guys:
freelancerfinancials.uk.com

The guy in particular was Robin Black, I cant vouch for anyone else, but he has been great.

You need a broker who understands contract employment. There are issues around how long you have been trading, and how long your contract terms are (6 months better)

My Mortgage was agreed on daily rate rather than annual income multiples, and I got a very competitive rate.

I am not connected with the company, I just used them and am happy with the service.

Wh05apk

ACG wrote: »

Definitely one for a broker.

It will be difficult but i wouldnt say its impossible. See a GOOD broker - ignore estate agent brokers and i would also avoid fee free brokers.

Any reason to avoid fee free brokers?

ACG

It sounded more complicated in the first post than it did in the last.

I would say about 50% of my business is with clients who have been turned away from other brokers who have said "it cant be done" (as opposed to they dont know where to place it) - when i asked why they went to those brokers the usual answer is they didnt charge a fee.

As i thought it was fairly complicated and the feedback i receive from clients, my thoughts of fee free brokers is that they either do not have the time or knowledge to place anything that is out of the ordinary.

I know that is a generalisation but its based on feedback i get from others.

Although as this now seems easier than it did in the first post, i would happily take that comment back.