Mortgage companies that manually underwrite??

Mummy_Bean

Just wondering if any one knows of what mortgage company manually underwrites?

Just I am pretty sure we would get turned down by the big high street lenders as were not a vanilla case.

Husband is Self Employed Contractor and I only have a 12 month fixed contract (after being out of work since Dec after being made redundant on Mat leave) but we only want a low LTV (about 70%) have cash and high income and equity in the house as well as both having the highest credit rating on all 3 credit reports.

Mortgage_Mark_2

Speak to a Contractor specialist broker, you need to make sure you're approaching the right lender(s) and a broker who knows what you do and how it works will be invaluable.

ACG

You might be ok with a normal lender. Typically the manual underwriters are smaller lenders not on the high street.

I would imagine you can get this through with a common sense lender.

Mummy_Bean

Cheers. I have spoken to two L&C and Charcol online mortgage advisers who are looking into it - but speaking to them didnt give me much confidence as they didnt have a clue what I was talking about half the time.

I have read through some of the lending criteria for Halifax and Nationwide they all seem pretty straight forward in regards to hubbys either 2 years HMRC accounts or 6 months invoices (he a plumber on the CIS scheme).

It just my salary where it gets confusing as they all want evidence that I have had a contract before which I havent as I was employed full time doing the exact same job. The contract I got now is maternity cover one with the option to carry on at the end if some thing available (but obvio this not guaranteed).

Mortgage_Mark_2

Neither L&C nor John Charcol are specialists in contractors and the complexities that involves (both are massive companies though!).

You could have two contractors working in the same job, on the same money and have different options, such are the differences in criteria from lender-to-lender. It's worth a chat with a broker who has experience of contractors, as there may be options other than Halifax and Nationwide (but yes, Halifax generally need the last six months payslips under CIS).

Mummy_Bean

Well I just googled for a contractor broker and was put through to a guy at Lann Finance who rang a few mortgage companies and they all saying it my salary that the problem as it a Mat cover contract - it with a high street bank (so not a normal sector to give contracts in) and as my employer cant guarantee future work - although they have said there is a strong possibility I would get a perm contract after the year is up. (but that doesnt mean anything to an underwritter)

Argh it so frustrating as we can easily afford a £230k mortgage (on a £300k house) my husband monthly income is more then enough to cover the mortgage and house hold bills and child care.

Mortgage_Mark_2

With respect, that guy was talking nonsense by the sounds of it! (never heard of Lann Finance?!)

He clearly doesn't understand contracting at all, the finance industry is rife with contract workers.

I'd advise having a look on a contractor forum for recommendations of contractor brokers, and call and speak to two or three to get a feel for them. There are some that charge a fee and some that don't, have a chat to them and see how you feel after speaking with them, then go with them, as it needs to be a relationship that you feel comfortable with, and above all for someone who knows what you do and how you do it.

To my knowledge there are about 4/5 contractor specialists in the market.

ACG

I agree with the advice above.
There are brokers who do "vanilla" cases and there are brokers who specialise (new builds, contractors, adverse etc). Personally I specialise in adverse, whilst I think I could do contractor mortgages it would probably take me longer to come to the same outcome as someone who specialises in that area.

koexelek

ACG wrote: »

I would imagine you can get this through with a common sense lender.

Sadly, that sort of lender is becoming as extinct as the dinosaurs

ACG

High street lenders aside who tend to automate a lot of it there are lenders who will listen to reason.

Mummy_Bean

What did people do before the internet eh?

Thanks guys I will do a bit more research and try a specialist. This current guy said he can only find one lender but they would need me to have worked in my new job for 3 months so he is now looking for a bridging loan! seems way over complicated!

if it came to it would could just borrow on my hubby salary which wold make up 80% of what we need and borrow the rest from family and remortgage in a year - but that seems a real expensive way to go about it.