Contractor Mortgages - When not in a contract

[eddie1507]

Hi Guys,

To cut a long story short my partner has decided she no longer wants to be in a relationship with me so has packed her bags and headed to her parents.
We are currently in the process of coming to an arrangement of what she wants cash wise to hand the equity in the house over to me, i'm currently with a high street lender as i was perm when i took the mortgage out however now i'm a contractor (have been for 1.5 years) i will need to get a new mortgage solely in my name.

The question is my current gig finishes next week but i'm weary that i will not be able to get a mortgage from a lender who understands contracting because at the time i will not be in a gig, has anyone been in a similar situation of getting a mortgage when on the bench or shed some light on my worries ?


Thanks

[eek]

Hi Guys,

To cut a long story short my partner has decided she no longer wants to be in a relationship with me so has packed her bags and headed to her parents.
We are currently in the process of coming to an arrangement of what she wants cash wise to hand the equity in the house over to me, i'm currently with a high street lender as i was perm when i took the mortgage out however now i'm a contractor (have been for 1.5 years) i will need to get a new mortgage solely in my name.

The question is my current gig finishes next week but i'm weary that i will not be able to get a mortgage from a lender who understands contracting because at the time i will not be in a gig, has anyone been in a similar situation of getting a mortgage when on the bench or shed some light on my worries ?


Thanks

Phone up a contractor mortgage broker and ask them....

[barrydidit]

Depending on how much equity we are talking about here, you might be able to do this via personal loan/your savings? Either way, you're gonna need to remove her name from the deeds (transfer of title) which will result in your existing lender assessing your affordability for the whole loan as at now. What she thinks she is due and what the lender value the property as being worth could be two different things. As eek says, a contractor specialist broker should be your first port of call to discuss specifics.

[doconline]

Hi Guys,

To cut a long story short my partner has decided she no longer wants to be in a relationship with me so has packed her bags and headed to her parents.
We are currently in the process of coming to an arrangement of what she wants cash wise to hand the equity in the house over to me, i'm currently with a high street lender as i was perm when i took the mortgage out however now i'm a contractor (have been for 1.5 years) i will need to get a new mortgage solely in my name.

The question is my current gig finishes next week but i'm weary that i will not be able to get a mortgage from a lender who understands contracting because at the time i will not be in a gig, has anyone been in a similar situation of getting a mortgage when on the bench or shed some light on my worries ?


Thanks

Hi,

Are you currently tied in to your current mortgage, initial discount / fixed rate etc? If so, might be worth talking to them first about getting your ex off the mortgage, and you just carrying on if you are confident that you can pay. As you may get stung for early repayment.

If your current provider can't help or if you aren't tied in, then as Eek said, speak to a contractor broker. There have been a few recommended on here.

But if things are friendly at this stage, hopefully she will understand your situation regarding contracts and can wait a little while till you get your next gig sorted out, to get your finances sorted.

You will need to get a bit of legal advice too regarding her stake in the property, as she will still be tied to the property on the land registry I think (not been through this myself).

Good luck and hope you get it sorted out quickly and amicably.

[Becky at Power Mortgages]

Hi Guys,

To cut a long story short my partner has decided she no longer wants to be in a relationship with me so has packed her bags and headed to her parents.
We are currently in the process of coming to an arrangement of what she wants cash wise to hand the equity in the house over to me, i'm currently with a high street lender as i was perm when i took the mortgage out however now i'm a contractor (have been for 1.5 years) i will need to get a new mortgage solely in my name.

The question is my current gig finishes next week but i'm weary that i will not be able to get a mortgage from a lender who understands contracting because at the time i will not be in a gig, has anyone been in a similar situation of getting a mortgage when on the bench or shed some light on my worries ?


Thanks

Afternoon Eddie1507

I believe you have two options available to you. The first is to wait until you have a new contract and proceed with the transfer of equity (this is remortgaging your current residential property to remove your ex from both the mortgage and the title deeds) utilising your contractor rate.

The second option is use your first years annual accounts to gain the lending. They will normally assess your income based on salary and dividends taken however as you only have 12 months trading accounts available to you, you are also likely to need to provide an accountants projection letter to confirm your second years figures.

As doconline has mentioned it would be worth speaking to your current lender to find out whether or not your current mortgage has any early repayment charges and if so whether or not they would be able to assist to save you paying these fee's.

[breaktwister]

Hi Guys,

The question is my current gig finishes next week but i'm weary that i will not be able to get a mortgage from a lender who understands contracting because at the time i will not be in a gig, has anyone been in a similar situation of getting a mortgage when on the bench or shed some light on my worries ?


Thanks

Your current lender may not make you go through their full underwriting criteria just to remove your partners name from the mortgage so start there.

There are two routes to get a contractor mortgage: one is via assessment of your personal salary and dividends but this will require two full years accounts which you don't have. The other is via a specialist broker with lenders who consider your daily rate. You need to be in a contract to be considered and they will request a copy of your current contract.

[Lance]

Contractor Mortgages - When not in a contract

You my have to just make her wait. It's her problem as well so don't just shoulder the entire burden. If she's unhappy with that and causes issues then you can just move out as well, and you then force her into buying you out or losing a heap of cash if you both default. I don't think that's wise for either of you but she's the one who walked so you have some reason to push quite hard.
Good luck.