First time contractor mortgage

Homeseeker

Hi,
I have been in contract for 5 years now. I am planning to buy my first home but the houses I have zeroed in (new built) are way beyond what I can get a mortgage for. I was thinking of help to buy scheme but I have a larger deposit that the 5% required and with the maximum mortgage based on my hourly rate, I am still at a 150 K shortfall. Can this be filled in by the help to buy scheme or do I need to consider houses priced lower that could fit in the help to buy scheme?? Are there any other options out there because I am capable of paying the premiums per month (from salary and dividend every month) for the amount I am seeking based on my research and talking to friends who are paying monthly mortgage payments on similarly priced houses.
I have been told that the mortgages are decided based on the rates/hr for contractors and based on that the total loan is nowhere near the amount I am seeking. Any advise ??

Thanks,

ellie27

My husband is a contractor and we went through a broker to get our mortgage. He felt that many banks just dont understand contractors etc and it was easier to go through broker.

He supplied last 3 years worth of accounts.
That was how they calculated how much he could borrow.
Think some banks just base it on your per hour rate.

I don't know anything about help to buy.

Have you been into a bank to find how much you can borrow? Or spoken to a broker?

kingstreet

If the builders you are considering are members of the HTB Equity Loan scheme, you should have options.

The minimum deposit is 5% but as the minimum mortgage is only 25% you could put down 55% deposit and have a 20% equity loan.

Your maximum borrowing power is likely to be less on HTB Equity Loan as the max income multiple is 4.5 x and the future cost of the equity loan has to be taken into account, usually at 3% of the loan.

An experienced newbuild broker should be able to do this, based on your gross contract value.