Weighing Up My Options

OnToAGoodThing

New user of the forums and have so far read some really useful posts.

I am looking to buy my first home and was speculating on what my picture looks like to the experts on the site. I intend on using a broker when i return from my travels in the coming month.

I am currently a contractor, i have a daily rate of 375 per day. My contract has 10 months left to run. My LTD company is yet to file any returns as i have not yet completed my first year. Before the contracting i was in permanent employment.

I have read on various contractor site forums that there are mortgage providers who will consider applications from people on day one of a contract if their previous history of employment has been good and stable, which mine has.

The finer details of my position are that i have 1 x loan from my bank which stands at 16k the loan has never had a late payment and the loan is 13 months old. I have 1 credit card with a balance of 130 pound, never missed a payment and is used just to pay for car parking etc and is cleared every month by direct debit. This card is 8 months old. Other than these 2 accounts there is a approved overdraft (never used). The only annoyance is 1 Default notice, which is 5 years old. This was for 110 pounds and was satisfied 1 month after registration. This was for a utility. The last time i had a missed payment was over 4 years ago, and this was for a mobile phone contract. I have no CCJ or Bankruptcy and i am on the electoral role.

I am considering the HTB EL scheme. The price of the property is 380k, i have 5% deposit already and could potentially make is 10% but would prefer to keep it at 5% to retain savings.

I have checked x 3 CRA reports, they all paint the same picture, but the scores are only 'Fair' (which i think are pointless anyways).

Any feedback from the experts would be great. Would also be interested to hear feedback from others who have been in a similar situation.

Thanks

Pixie5740

You've got a lot going on there. HTB, defaults, and no tax returns.

When I was looking at contractor mortgages there were lenders who would accept you on day one of your contract but the employment history they were looking for was my employment history as a contractor, not an employee. I had a 3 years of steady contract work behind me and 2 sets of tax returns.

I have the details of the mortgage broker I used who is whole of market and specialises in contractor mortgages. I can PM them to you if you want.

amnblog

Can we summise you have been contracting for 2 months?


Also, that you are currently out of the country?

getmore4less

Whats the rate on the loan?

Nearly £38k savings whats the rate on that?

Unless the savings are making good money I think I would pay off the loan, rebuild savings and review when the contract is renewed or you start the next one.