Mortgages and contracting: hiding the truth

**Lord** · 1 October 2006, 19:12

I had two years of accounts and was on the bench.
Walked into my own bank, who said yes straight away, walked into a local estate agent and spoke to thier IFA, next day had an agreement in principle and went with 0.5% below base for 2 years with Bank of Scotland.
Mortgage could not have been easier, didn't need a specialist. The thing is that you must have the 2 years accounts.

**VectraMan** · 1 October 2006, 19:27

I got some advice from Parasol financials about mortages last year. They recommended a couple that would deal with contractors (I think the only stipulation was you'd been contracting for at least 6 months, or at least had a contract that would take you beyond that). The better of the two for me was from Northern Rock, mainly because there were no fees for overpayments, and you could take payment holidays, which is ideal.

Also they'd add a personal loan to pay the deposit and repay my existing loan with lower repayments than I'm already paying. Almost too good to be true.

Fortunately I saw sense.

**Lockhouse** · 2 October 2006, 06:20

I just walked into the Halifax off the street, they gave me 3x my company's gross contract value with 3 years accounts.

**paulb567** · 2 October 2006, 08:19

Got a mortgage after 6 months of contracting with http://www.contractormoney.com/

Didn't need years of 2 accounts. The whole process was relatively painless.

**Ardesco** · 2 October 2006, 08:54

Intelligent Finance seem to be not too worried about contractors. Theyu gave me a form to get my accountant to fill in which said my LTD Co brought in X amount of money per year and in my accountants opinion there was no reason why this should stop.

Probably the quickest mortgage i've ever set up, we completed in 2 months

Overall I think the big banks are starting to realise that contractors are a good market and are starting to get thier act together a bit.

**triboix** · 2 October 2006, 10:22

Originally posted by WageSlave

Esteemed Gentlemen of the Forum,

Having finally worked my way out of pikeydom and saved enough money to make the local pizza delivery boy green with envy, the time has come for WS to consider leaving the bushes and buying a house like a normal person.

Given this momentous moment, I’d greatly value any stories or tips from other contractors in how they managed to convince a company to lend them a mortgage. Obviously contractors, despite earning vast sums of money and being considerably more employable than the average permie lackey, are considered scum by high street lenders. I’m not keen on paying a premium for self-cert or a specialist lender, and in a foolish attempt to con the lender I’ve switched to a managed service in order to say that I’m technically an employee rather than self-employed (quickly to be dumped after grabbing the money!). Wife has just become a permie, so I’m hoping that helps.

Any tips, advice or useful anecdotes?

Thanks.

I would advise you to go through a mortgage broker. Ex: contractormoney.
Banks (or more exaclty bank employees) are usually useless when it comes to deal outside a standard frame (ie: when you are employed). Specialized mortgage brokers will help you best.

**Epiphone** · 2 October 2006, 11:04

How have you found the rate for repayment cover or critical illness cover? About the same as normal rates or do lenders gouge you on that aspect being a contractor?

**Ardesco** · 2 October 2006, 11:34

I don't do insurance. If i die i really don't care if the bank gets it's money back or not (which is what the majority of these things are for, no matter how they spin it)

**Ivor1** · 2 October 2006, 12:02

I used contractorfinancials, thought I would have a mare getting my morg but they sorted it. Plus there female staff sound tasty and they even sent me a card signed by their office when I completed ahhhhhh

But serioulsy they were good, defo would use them again

Mortgages and contracting: hiding the truth