Nationwide / Contractors / Self employed

Eddie2023

Hi, I've asked similar before so apologies for posting again but we're going round in circles trying to find advice with a broker or on line

I am 57 and will soon have the enough to clear my mortgage. I would prefer not to do this at the moment because the rate is so low and I enjoy seeing it come down each month !

My daughter went self employed last summer following redundancy (day rate project management, several clients). She did a small amount of freelance work while employed but took the jump to full time when the redundancy came. She also has a part time PAYE fixed term role which started Nov 23 and is for 12 months

She currently owns a 1 bed flat mortgaged through Nationwide but really needs somewhere bigger now because she works from home

The mortgage broker she is talking to is blowing hot and cold as to whether come April she stands a chance of getting a new mortgage - we know Nationwide won't allow her to stay with them because of her employment status. Madness 3 yrs into a 5 yr fix, perfect payment history and overpaid
 
My question, I guess, is how can I help her ? Step family politics mean I can't lend her money from my savings or secure a new loan against my current home

I've read about JBSP mortgages and even about being a guarantor (the guarantor stuff was on the Nationwide website of all places) but I assume that I would need to be mortgage free since my salary isn't huge

Her LTV would be approx 60 %

Is there any hope of a mortgage DIP in April ? Even with a non high street lender and we have to manage the higher rate ?

It's heartbreaking to think she'd get a mortgage with a minimum wage PAYE job but is struggling now despite working so hard and doing well

Thank you

Eddie2023

Posted twice

DullGreyGuy

As a long term day rate contractor, not had a problem getting a mortgage with a much higher LTV originally but  had several years experience in being a contractor before applying for the first mortgage. Our advisor at the time said 2 years was sufficient even though I had more. 

It's not fully clear how much experience contracting she has and accounts she can provide. If the pre-full time contracting if the bit on the side was token or she was effectively doing two full time jobs. 

In the first instance she should speak to a mortgage broker 

Hoenir

Eddie2023 said:

Madness 3 yrs into a 5 yr fix, perfect payment history and overpaid
 

Totally irrelevant. Lenders assess risk based on current circumstances not on the past. Complete sanity. Likewise they set their criteria and underwrite risk at the macro not the micro level.  

Eddie2023

Hi, thank you for replying

The pre full time was the same line of work but you're right it was a token

Thank you again

DullGreyGuy

Hoenir said:

Eddie2023 said:

Madness 3 yrs into a 5 yr fix, perfect payment history and overpaid
 

Totally irrelevant. Lenders assess risk based on current circumstances not on the past. Complete sanity. Likewise they set their criteria and underwrite risk at the macro not the micro level.  

Thats odd, they asked for 3 years of accounts from me @hoenir... why's that if they only look at the present rather than the past? Surely if it's just the present I only would have to provide a single invoice? 

Underwriting is a combination of the macro (the general economic situation) and the micro (the applicant's situation). Would be a very weird thing if you think its only the macro so everyone who applies in good months automatically get accepted irrespective of their personal (micro) situation. 

Altior

In this case, the existing mortgage is a red herring. It seems from the OP that Nationwide don't accept applications from anyone with the circumstances that this individual is now obtaining their regular income. I presume that is what Hoenir is getting at. An operation the size of Nationwide doesn't cast aside their criteria just because a particular customer has had a positive history with them to date. 

Seems to me it's pretty apparent that there's more risked attached to someone who only has a few months' provable income via self employment than being employed, with a consistent income for a period of time. The individual has faced redundancy, is now only just starting out on the journey where they have moved to primarily self employed income, and they want a larger mortgage at the same time. It's not surprising that the situation is uncertain, and the options may be very limited.

ACG

She can stay with them, even if she was no longer working. They would allow her to do a product transfer without underwriting. 

Nationwide are pretty good for people on fixed term contracts, their criteria is more relaxed than most. 

Eddie2023

Hi ACG thank you for replying, I was hoping you would

It would be a new property rather than a product transfer. Do you think it's worth talking to them ? If they wouldn't lend more we could possibly make it work with her current outstanding amount

Thank you

ACG

Sorry, I am not doing myself any justice if you were hoping for me to reply. The in-laws were walking in as I was reading/replying so it was a bit of a rush job. 

I have only just noticed you would need to port which is in essence a new application. 

They MAY allow the port to be made as an exception, I know some lenders would. I am not sure about nationwide. They are ok with contracting/FTCs where it is PAYE, where it is self employed they need 2 years according to criteria. But as they are "stuck" with your daughter as a customer if she cant move, it makes little sense to decline her for a port if there is no addition borrowing. 

There are various options if you are happy to be a sort of guarantor (JBSP) but rates will be higher than nationwide I think. No harm in trying with nationwide, worst case scenario is they say no. 

Eddie2023

Hi ACG, thankyou. We'll ask for a face to face appt rather than the call centre. Like you say, they can only say no

Thank you again and enjoy what's left of the weekend