Contractor Mortgages conundrum

[mcgrco]

Hi there,

I find myself in a bit of a predicament.

I recently went freelance after 16 months of travelling. On my return in July 2006 I worked through an offshore company (DMS) based in the isle of Man. Since April of last year I have been working through a limited company and am due to submit my first year accounts imminently. I;ve just started a new 6 month contract which will realistically last (based on prior experience) 1-2 years.

I currently own my own my flat and have about a 40% or less loan to value ratio. I would like to release an additional (at the very most) 30% (70k) from my flat to help me fund another purchase. I would need to switch my current mortgage to buy to let. The plan is to rent the property to the council ( who are paying about 15% over market value) and who will guarantee the rent for three years. The rent will more than cover the mortgage repayments on the property I think.

3 times my annual salary is approx 500K. I have about 120k in savings for a deposit and would like to look at a property for around 500k

So ...120k savings +70 in released equity = 190. I would like to get a mortgage for the remaining 310.

Abbey, my current provider, need two years of company accounts, despite me being with them for 9 years, and getting my initial mortgage when I was a limited company before. Given that most banks refuse to accept managed companies DMS " interest free loans" and income what would you suggest I do.

Are there any banks out will to lend to me based on one year of company accounts and lots of equity/deposit?
Any help/pointers is greatful accepted

[isthatright]

you may be able to buy the second property with a buy to let mortgage, you then rent a third property for your own use.

[gingerjedi]

Have you looked at this?

They should have a better understanding of your circumstances.

[mr_woo]

I recently obtained an 80% mortgage via contractormoney based on my contract value. Only been Ltd since Jan. Highly recomended.

[administrator]

Cheers jedi, beat me to it.

Please use the CUK form to contact them or at least let them know that you heard about them from us. I have used them to and as long as you have a signed contract they should be able to sort you out.

[isthatright]

another option they will consider is if you use a BTL mortgage for your existing property and also a BTL mortgage for your new property and you live in a third rented property.