IT Contract Having Problems Getting Mortgage

ITContractor_2

Hi guys, long time listener, first time caller.

I was wondering if any one could help me with a complex mortgage problem.

I work as an IT Contractor, using a limited company structure, taking a wage, expenses, a directors loan and some dividends. I own 33 1/3 % of my company (i.e. there’s three shareholders).

I'm currently having my first year’s books drawn up.

My wife is a self-employed hairdresser, who is just about to have her books drawn up.

I currently have a mortgage (5yr fixed, 3yrs to run, approx 4% APR) with Bristol and West but am looking to move to a nice little cottage we have found.

I have some late payments of mobile phone bills on my credit record from last year, but have never missed or been late on:

Mortgage payments
Loan payments
Card Payments
Council Tax payments

I have no CCJs, and am not in arrears for any kind of credit payments.

Because I'm an IT contractor my current mortgage company wont touch me on moving my residential mortgage to a new property, and there’s a £4k fee to escape the mortgage.

Because I'm an IT Contractor a lot of the High Street banks also wont touch me, due to the fact I own more than 20% of my company, the company turns over less than £250k a year and has only been going for 18 months, and therefore I don’t have the 3 years books to satisfy their underwriters.

I've approached a specialised firm who deal in getting mortgages for IT contractors, who due to my credit record not being perfect (the phone bill problems... long long story, and im still in discussion with one of the Telco’s to have these blemishes removed) they have advised I go down the route of getting a poor credit / sub prime mortgage, which would charge in the region of 6% to 8% APR (2 years discounted @ 6%, remainder of term @ 8%)

The wife has a perfect credit record, (mainly due to the fact that all the bills are in my name and I pay off her credit card each month...!!) but as a self-employed hairdresser doesn't earn enough to get the new mortgage (£160k) in her name.

We have been advised that even with her on the mortgage we would have to go down the sub prime route - as
a) No one wants to touch me, as I'm an IT Contractor,
2) I've made things more difficult for myself as I've used a Limited Company structure
and D) I don’t have a perfect credit record.

Any thoughts guys?

Martin, what criteria do lenders look at when deciding who to lend money to?

herbiesjp

It really will depend on the figures you are looking at.

What is the property value?
What mortgage do you need?
What is your income?
What is your wife's income?

ITContractor_2

For any money saving views who may be reading this post, i've sent my financials privately.

I hope to get a 95% mortgage, but I would if needed go for an 85% mortgage.