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Question for the contractors, self employed, ltd company etc

edited 31 March 2018 at 7:15PM in Mortgages & endowments
11 replies 1.3K views
willgrahamwillgraham Forumite
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edited 31 March 2018 at 7:15PM in Mortgages & endowments
which mortgage provider accepted you
did they give you a hard time?

i am looking to do my own application but i dont wont to apply to one thats likely to turn me down

i have tried using a few brokers and they have been as useful as a chocolate tea pot, insisting that i have 3 years worth of accounts which is not true as i know some banks, one years worth of account is sufficient


it would be interesting to know if most of the contractors, self employed , sole traders, limited company applicants here ended up using the same one
«1

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  • How many years of accounts do you actually have? Unless you have some other aggravating factors in your case a self employed mortgage with 2 years accounts is fairly easy to place, so long as the Loan to value, affordability, income to debt ratio, credit profile, property type and credit score are all within the lenders published criteria. Be careful you don't apply too many times and knacker your credit score up.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • edited 31 March 2018 at 4:38PM
    charlie792charlie792 Forumite
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    edited 31 March 2018 at 4:38PM
    It will be case specific I think, but we went with Natwest with OH just finishing his 2nd year self employment. First years figures were quite low but second year was 4 times the first, Natwest calculated his salary as an average of the two which was fine for what we needed at the time.

    I banked with Natwest for years, dont know if that made any difference in the great scheme of things but they didnt ask me for any payslips or bank statements, just for OH business account statements that was with another bank. Then for proof of income they wanted two years accounts certified by an accountant. We phoned a few local ones around the area, found one willing to do it for £120 and that was it. what we provided to Natwest with no issues, had our mortgage offer within 2 weeks. We did have 15% deposit which did probably help us out and we took the loan over a 35 year term which the advisor said would help us pass on the affordability aspect.

    We just switched product last time and stayed with Natwest to avoid any hassle but we are re remortgaging this year and a few building societies I have seen just ask for tax overviews from HMRC rather than us having to pay out for more certified accounts.
    MFW 2020 #111 Offset Balance £69,394.80/ £69,595.11
    Aug 2014 £114,750 -35 yrs (2049)
    Sept 2016 £104,800
    Nov 2018 £82,500 -24 yrs (2042)

  • ACGACG Forumite
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    Most lenders work off 2 years account, there are some who will work off one years or your daily rate if a contractor.

    With this sort of thing there is more than one way to skin a cat so to speak. One years accounts is not usually acceptable with high street banks (although there are exceptions to that if certain criteria is met).

    Brokers on here can not name lenders, but if you give us a little more information we can tell you if what you want can be done. Alternatively, maybe try to find a decent broker? Self employed mortgages is usually something that would be classed as a bread and butter case. I can only assume the brokers you have seen are fee free/inexperienced/work for an estate agents - if none of those, it is a little worrying.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • unoriginal86unoriginal86 Forumite
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    I attained a mortgage directly from the Halifax whilst working as a contractor. They required a copy of the contracts I was working as evidence.

    The Halifax Intermediaries website contains information on their criteria and the proof of income/evidence required for contractors, self employed e.t.c.
  • amnblogamnblog Forumite
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    Each contractor/self employed application has its own quirks which works for some Lenders more than others.

    The soonest you can arrange lending as a Contracter is immediately you have a contract provided all the other issues line up.

    Waiting for two or three years is not necessary for most applicants.

    There are many complications though.

    Examples include:

    Contracts that are not contracts
    Contractors with insufficient experience
    Umbrella companies
    Tax avoidance schemes

    Finding the right lender without an experienced Broker is pot luck.

    Our OP appears to have only spoken to brokers with extremely limited experience.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • edited 1 April 2018 at 2:25PM
    willgrahamwillgraham Forumite
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    edited 1 April 2018 at 2:25PM
    How many years of accounts do you actually have? Unless you have some other aggravating factors in your case a self employed mortgage with 2 years accounts is fairly easy to place, so long as the Loan to value, affordability, income to debt ratio, credit profile, property type and credit score are all within the lenders published criteria.

    i have been limited for 3 years now

    but during (year 1) 2015-2016 and (year 2) 2016-2017 i was :
    - taking some time off
    - looking after parents
    -being tax efficient as possible

    it was not till this tax period of 2017-2018 that i really thought hard about my future and to get on the property ladder that i am working as much as possible and this time not being tax efficient

    which is why i will only have 1 years worth of accounts to work off
  • edited 1 April 2018 at 2:25PM
    willgrahamwillgraham Forumite
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    edited 1 April 2018 at 2:25PM
    I attained a mortgage directly from the Halifax whilst working as a contractor. They required a copy of the contracts I was working as evidence.

    The Halifax Intermediaries website contains information on their criteria and the proof of income/evidence required for contractors, self employed e.t.c.

    nice to hear you had no problems

    was you applying as a sole applicant or did you have a partner (who is working on the books for a company)
  • willgrahamwillgraham Forumite
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    amnblog wrote: »

    Finding the right lender without an experienced Broker is pot luck.

    .

    do you have any suggestions?

    can you recommend any you know first hand of any brokers who are good
  • deejaybeedeejaybee Forumite
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    I am self-employed.

    I was turned down by Santander & Nationwide.

    Turned to a local broker for help, and was accepted by Woolwich (Barclays), and the broker had Coventry lined up as an alternative.

    This was around 4 years ago.
  • shaft1shaft1 Forumite
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    I took out a mortgage in 2011 with Natwest after 5 years of contracting. They asked for 2 years of accounts and based the lending amount on salary + dividends.

    I am now in the process of remortgaging and have gone through a broker (am i allowed to say who it is?). They've found me a mortgage deal with scottish widows and they've asked for 2 years of business history. SW only do mortgages through brokers.
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