Mortgages for contractors

simonfr

Im a contractor, been doing so for the past 24 months.

Found a house i'd like to buy, price in region of £320k, have about 45% deposit in cash in the bank.

Has the contractor/self cert/ special mortgage market been decimated? How easy will it be to get a mortgage for my circumstances?

Cheers,

Simon

herbiesjp

You should be fine

What is your income?

simonfr

The contract value is about £110k per year, based on 45 hours per week, and working 50 weeks per year.

Its in aberdeen in the oil industry, so with the current price of oil, there is no shortage of work..... and have just started another 'ongoing' contract.

Is it best to go to a broker or find a suitable company to go with?

herbiesjp

I'd suggest going via a broker, as not all lenders will agree this, and going via a broker will give you pofessional indemnifed advice.

On that income the loan amount should be fine

DO you have any other debts? Do you have a clean credit history?

simonfr

Very small debts <2k, and clean credit history and no missed payments at all.

i am currently in another property, which i shall sell (which i am paying a mortgage on) but it is not imperative that i sell to go forward to purchase this property.

I'd certainly like to think with this level of deposit that it shouldnt be a problem, its just i have heard stories about other 'self employed' peoples nightmares trying to arrange finance.

Dan_Collins_2

If you want the best rate pos u may have to go direct, if you want good advice and to be protected then use a broker. However using a broker could cost you as much as .5-.8% in interest rate!

herbiesjp

simonfr wrote: »

its just i have heard stories about other 'self employed' peoples nightmares trying to arrange finance.

Exactly - that's why although it may seem relatively straightforward some lenders will still try and make it difficult for you even with a good application like yours.

If you feel confident enough, you could try searching some comparison sites like moneyfacts or moneysupermaket. But remember money supermarket farms out your details to the highest paying brokers who buy your details as leads (and you will not know the quality of the broker that gets in contact).

If you go direct, make sure you explain your scenario first to the lender, so that way they will tell you at the outset whether you meet their lending criteria, and will avoid a pointless credit search if you do not mee the criteria

Dan_Collins_2

Halifax would do this no issues so would Abbey, Woolwich and maybe C&G. RBS may but service has turned into a joke.

Not many lenders are lending, which makes it easier to search.

Mathsguy

Have you tried getting in touch with Contractor Money, BP boy?

simonfr

Cheers guys, it would seem Abbey are happy to do business with me, if the telephone call i had with them is anything to go by, and a good rate 5.64% fix for 3 years.
Gotta open a savings or curent account with them tho to qualify.

Cheers,

Simon