Contractor mortgages and fixed terms

baggies1

Hi all,

I have a two fold issue if anyone could help.

Firstly, im a contractor so getting mortgages if annoying difficult with regular lenders.
Can anyone recommend a good contractor mortgage provider?
I'm working with Contractor Mortgages at moment and they want £700 fee for the them and the mortgage provider want to charge me £1k to setup a mortgage deal.

Secondly, im stuck in a 5yr fixed term until oct 2014.
I need to re-mortgage for extra funds and finance a house extension over the summer. A+L want £1800 repayment fee right uptil the 14th oct which seems unfair this late in a 5year fixed term in which ive paid 4.94% whilst the BOE has been 0.5% for 5years.
Is there anyway out of this deal?

Any insight would be great thanks.

holly_hobby

No, you agreed to the erc's as a contractual term, when you chose the product you currently have - hence if you want to exit the agreement early, the lender to allow you to breach the terms and end the contractual agreement, is fully entitled to levy the charges already disclosed (and agreedf by you) at outset.

The only tenuious argument you could present on a "have a go" basis, would be if you were asking as part of your remortgage to also switch to an alternative deal with the same lender, but even then they are not duty bound to waive the early repayment charge.

With regards the broker fee, well you are seeking specalist advice in would could be termed as a niche area, and just as you are paid for your services and expertise as a contrator, mortgage advisers are equally entitled to be paid a fee for their knowledge and services.

If you want to go it alone (and assuming you have a clean credit record and a yr or 2 trading) why not simply submit your application as a straight self employed bod, with SA302s (& books if requested or you want to go with lenders whom assess on net profit, as oppossed to declared drawings), or do you need the mge to be based on contract criteira (ie value of contract itself, as opposed to what your net profits or total drawings will illustrate?)


Hope this helps

Holly

dimbo61

WAIT till October 2014 or next summer.
What does the mortgage revert to at the end of the fix?

"What is the SVR for Alliance & Leicester (A&L) existing mortgage customers?

4.99%

Why is A&L's SVR different from Santander's?

A&L mortgage customers have different terms and conditions from Santander customers. Until 28th May 2010, the products previously sold to A&L customers were offered on the basis that, at the end of the introductory rate, the mortgage reverted to A&L's SVR currently 4.99% (Bank of England Base Rate +4.49%)."

From the website!

If not happy with the Mortgage Broker look elsewhere and same with the new Lender and the Fee!

amnblog

What is your day rate?