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Mortgage Advice Required

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    Mortgage Advice Required

    Hi fellow contractors! New here and been reading quite a few posts over the last couple of days related to mortgage...seems like a great community with lots of good advice on offer.

    Now to my predicament...

    I have been in work for 1 full year and have a contract until end of the this year (prior to I had a break of around 9 months but before that been in contract for over 3 years no break). Spoke to a broker and he is confident that he can get me a mortgage with Halifax but I have been on their website and it says something about being in contract for 2 years continuous...but then on these boards I have read you are okay just as long as you have 6 months on current contract (which I have).

    Another thing is that need to exchange and complete by the end of the month. In your experience, how long does it take from application to mortgage offer. Broker is confident he can get it done but I am not sure he is just saying this to get my business?

    He did mention that only thing he can't control is the valuation as sometimes it takes the bank a week to get someone over to property but he said that since the mortgage is already underwritten that once the valuation comes back in that I should have mortgage offer within a few days.

    Thanks in advance for replies!!!

    #2
    Exchange and complete by the end of the month would be tough. As they said the valuation can take weeks depending on current load with the surveyors.

    Your best chance would be to use a broker so you have someone to chase and can chase on your behalf. They do this stuff day in a day out.

    I don’t know about specific lenders but I know some will do it based on just having a current contract. Some are more strict. Again the broker will know and match you the best they can.

    My mortgage offer took about 3/4 weeks. It’s the rest of the stuff that takes the time. Searches, Queries, Chain etc etc. Total purchase time for me was 5 months and I had a mortgage in principle for more than I ended up borrowing.

    Comment


      #3
      Just completed last week.

      Mortgage application went to Halifax on 13th December, mortgage offer was received on 23rd December, so 10 elapsed days. Took longer to get all my bank statements together before the application was sent in.

      No accounts required, at least one month left on contract.

      Completing in 4 weeks will be close but do-able, it depends on how proactive the solicitors are in getting their reports done and whether or not there are any issues flagged such as missing Building Reg certs, etc.

      Comment


        #4
        Originally posted by meridian View Post
        Just completed last week.

        Mortgage application went to Halifax on 13th December, mortgage offer was received on 23rd December, so 10 elapsed days. Took longer to get all my bank statements together before the application was sent in.

        No accounts required, at least one month left on contract.

        Completing in 4 weeks will be close but do-able, it depends on how proactive the solicitors are in getting their reports done and whether or not there are any issues flagged such as missing Building Reg certs, etc.
        glad to hear that it can be done in the time period. i have all my statements to hand, going to hand them over to broker tomorrow morning.

        which broker did you go with?

        Comment


          #5
          I’d be looking at why you “need” to exchange and complete by the end of the month and start putting in a contingency plan.

          There is so much which could delay it all which can be out of your control. Also some places won’t like to exchange and complete on the same day and require a week in between.

          Comment


            #6
            Consider Post Office mortgages (rebadged Bank of Ireland). Their contractor policy is quite appealling.

            We will consider applications from contractors, subject to the following criteria:
            • a minimum of 12 months contracting in their current occupation
            • a minimum gross contracting income of £50,000 per annum. We will base affordability assessment on 80% of the applicant’s gross income
            • a maximum of 90% Loan to Value (LTV)
            • we will use the current contract for income assessment, but we will also review all contracts held in the last 12 months
            I just remortgaged my BTL from Natwest to Post Office and it was bloody simple, no brokers involved. I did it all online, got the AIP approved, put in the full application same day which was approved there and then, they instructed the valuer who rocked up 9 days later. The mortgage was then put to full offer the day after the valuer came.

            Halifax are contractor friendly, but you need 6 months remaining on the contract if you have had 12 months unbroken contracting, but the 6 month remaining requirement goes away if you have had 2 years continuous service in the same type of work. (They are friendlier to IT contractors than to other types of contractor).

            Natwest are also reasonably friendly, but again you need 12 months contracting history with 3-6 months remaining. (The three month requirement is quite shoddy when your client only gives you three month renewals pretty close to the expiry of the last one - there isn't a particularly large application window).

            I have never used a broker for a mortgage as a contractor...
            Taking a break from contracting

            Comment


              #7
              I got a mortgage with halifax after being in my first contract for 3 months, with 3 months left on it. I think they just need confidence you would be able to get another contract when you leave your current one. Either an FTE history, or history of being able to pick up new contracts and you won't have a problem.

              Comment


                #8
                Got mine from Halifax. When I did the sums, the brokers (despite their protestations) couldn't get a better deal *once* the fees and %apr and cashback bonus and everything had been taken into account

                Oh and it didn't need some magic route in, just made sure I got an appointment in a big city centre Halifax (rather than the backwater one near me) and they knew exactly what to do with day rates etc. The only proof they needed was the schedule page of the contract with 3 months remaining, and an example month of statement from the business bank account showing the same going in.
                ⭐️ Gold Star Contractor

                Comment


                  #9
                  Originally posted by mac86 View Post
                  Hi fellow contractors! New here and been reading quite a few posts over the last couple of days related to mortgage...seems like a great community with lots of good advice on offer.

                  Now to my predicament...

                  I have been in work for 1 full year and have a contract until end of the this year (prior to I had a break of around 9 months but before that been in contract for over 3 years no break). Spoke to a broker and he is confident that he can get me a mortgage with Halifax but I have been on their website and it says something about being in contract for 2 years continuous...but then on these boards I have read you are okay just as long as you have 6 months on current contract (which I have).

                  Another thing is that need to exchange and complete by the end of the month. In your experience, how long does it take from application to mortgage offer. Broker is confident he can get it done but I am not sure he is just saying this to get my business?

                  He did mention that only thing he can't control is the valuation as sometimes it takes the bank a week to get someone over to property but he said that since the mortgage is already underwritten that once the valuation comes back in that I should have mortgage offer within a few days.

                  Thanks in advance for replies!!!
                  There are several lenders who will able to assist with your purchase subject to day rate.
                  As previously stated on the thread Halifax offer a very prompt service, generally offering the same day the valuation has been received or the the following day.
                  My average timescales for offer is within a week.
                  I would recommend utilising a broker who will continue to chase the solicitors post offer due to the timescales to completion. It is achievable with a committed solicitor.
                  Best of luck with your purchase.

                  Comment


                    #10
                    so i have approached two brokers both have advised to go with halifax since the process is very streamlined. the only difference is that one broker is confident that he get the mortgage with only 2 months remaining on current contract (1 year continuous with 2 months to go). the other broker has said he will need at least 6 months to go.

                    Comment

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