Mortgage application and bench time

[Gumbo Robot]

I've had a lot of down time over the last 2 years, some planned, some unplanned.

I'm in the process of getting a mortgage & what I didn't realise is thst most lenders won't lend if you've had more that 6 months downtime in the past 2 years.

I'm right on the 6 months, literally, & if I have even 1 more week the advisor tells me that the application could be refused.

Just wondering if there are any alternative routes I could follow? I know I could go by my accounts but presumably they'll also show the hit from 6 months out of contract.

More a question about whether anyone else has been in thus situation really and how you handled it.

[vwdan]

My situation isn't really the same as most peoples as our mortgage application was in my wifes names (She has a decent permie job), but our IFA just treated my application as a normal Ltd company and just provided year end account details. We didn't mention contracting or anything like that - just that I was a 'self employed' consultant and here are the figures.

I should add that the agreement in principal came through fine, but the sellers pulled out before the mortgage application was approved.

[northernladuk]

More a question about whether anyone else has been in thus situation really and how you handled it.

You mean can you lie or get around the rules?

Is your mortgage broker a contractor specialist?

[Mark McBurney@CMME]

Generally you need at least the last 12 months gap-free. If you've got this, you may have options regardless of even a six month gap 12+ months ago.

Two of the most prolific contractor lenders, Halifax and Clydesdale Bank, won't lend if you've had any more than c.6 weeks as a gap in the last year, unless there's a valid reason for it in their mind. Clydesdale are slightly more amenable to a sanction if the rest of the application is up to scratch, but with 6 months of gaps over the past two years, you really will struggle, sadly.

[Gumbo Robot]

Generally you need at least the last 12 months gap-free. If you've got this, you may have options regardless of even a six month gap 12+ months ago.

Two of the most prolific contractor lenders, Halifax and Clydesdale Bank, won't lend if you've had any more than c.6 weeks as a gap in the last year, unless there's a valid reason for it in their mind. Clydesdale are slightly more amenable to a sanction if the rest of the application is up to scratch, but with 6 months of gaps over the past two years, you really will struggle, sadly.

What about if I went by my accounts rather than day rate? Do they still look at gaps? I know the loan amount would be less but I have another option to extend my current house which would obviously require a much smaller loan.

[northernladuk]

What about if I went by my accounts rather than day rate? Do they still look at gaps? I know the loan amount would be less but I have another option to extend my current house which would obviously require a much smaller loan.

Company accounts or personal accounts???

[Gumbo Robot]

Company accounts or personal accounts???

Company.

[flamel]

Company.

I'm benched at the moment and applying for additional mortgage - what they wanted was the last two year's accounts - no mention of ongoing contract work or forecasts required - that was with Santander. The accounts had to be done by a professional firm though.

[Gumbo Robot]

I'm benched at the moment and applying for additional mortgage - what they wanted was the last two year's accounts - no mention of ongoing contract work or forecasts required - that was with Santander. The accounts had to be done by a professional firm though.

Did you extend your loan by a significant amount? I'm going from £100k ->£180k

[Mark McBurney@CMME]

What about if I went by my accounts rather than day rate? Do they still look at gaps? I know the loan amount would be less but I have another option to extend my current house which would obviously require a much smaller loan.

If you're using account to prove income, the contract is irrelevant, as accounts show your historical income over the last 2-3 years, rather than your current ongoing work, so provided the gaps don't impact on the profit/your personal drawings too much then this is probably the only solution for someone with 'excessive' (in the eyes of a mortgage lender) gaps.