Co-op mortgage

freelancer

I'm looking to remortgage on a lifetime tracker and the Co-op has one which would suit me fine. It looks like I qualify on LTV and income multiples and I've banked with their internet bank for some years. I'm going to see them next week but would like to be prepared and wondered if anyone could help with the following queries:

1)If I'd be better going via a broker? I originally intended to, as my earnings are slightly complicated, but is it better to go direct if I already know which deal I want?

2)What their attitude to self-employed/complex earning patterns is? I'm a freelance and on the payroll of two organisations (one as a casual, the other I think on a contract with no set hours) as well as earning self-employed as well. I've been freelance for 15 years+ and have an accountant and all the paperwork. I'm looking to borrow about 4 x income and it looks like they lend up to 4.5.

3)Whether they have any problems with ex-local properties? (It's a small low-rise, brick block with quite a lot of private ownership, so I wouldn't have thought it would be a problem.)

Currently I'm on a fixed rate with A&L that finishes in a few months. I originally planned to stay with them but the fees for their deals are now so huge that it looks like I'd be better off on the SVR. I think I may sell within the next two years, so don't want any exit fees.


Thanks

homer_j_3

Co-op do not pay brokers for placing business so you will need to find one that will either help you with the paperwork in exchange for a fee or let them look at the mortgage protection aspects and IF there is a need there, then let them do that for you so they can be paid in that way. Using a broker may save you time in the long run as they will be able to ask the questions and if it doesnt go ahead for any reason, they can easily find a suitable product that they have access to.

If you do not want to to do that, you could always ask the questions directly regarding the types of property they will lend on.

As far as income goes, If you have accounts for the last 3 years then the lender should have no issues with this and will use these accounts (providing your accountant is of the correct qualification). It will be the net profit figures that they will use for this. You do not need to complicate it by saying exactly you earn your money as such - unless you have accounts, payslips etc to form the income. If that is the case then you may need to go self certified if the co-op will not accept your employment as such due to not having permenant contracts and no guaranteed hours.

Tiddler_2

Not quite right - Co-op do pay SOME brokers, but they have a very small number on their panel.

My company IS on their panel, but when I submitted an application in March I got the papers back 2 weeks later saying we weren't!! Papers were returned, and I have just been told that the mortgage has been agreed and we should receive our mortgage offer in 7-10 days.

This was on a 22% LTV case, 0.3 x income remortgage deal for someone in their job for several years. The cleanest case you could get!!

By the time I get the offer it will have been 2 months since I first submitted the application.

Needless to say I wouldn't recommend Co-op to any other customer.

freelancer

Thanks very much. Basically the accounts side of it should be fine but for the last few years I've earned most of my income (75% plus) from one of the two companies I'm on the payroll of, so I'll probably be relying on the payslips and P60s. Last time the broker based it on a larger income multiple of this income alone, but I assume things aren't so flexible now.

I'll have an initial chat with the Co-op and then go to a broker if it's not looking promising!