How will the "Self-Cert" ban affect Contractors

[Freelancer Financials]

In light of all the recent headlines on the FSA banning "self-cert mortgages" and continued tightening of lending criteria for self-employed workers we have posted an article <removed by mod> on our web site that address contractors concerns about how these changes might affect their chances of getting a mortgage.

But even in these difficult financial times securing a mortgage does not need to be an issue for a Contractor. The key is to ensure that the mortgage application is properly packaged and is placed in front of the right decision makers within the lending institutions.

An experienced Contractor specialist mortgage broker will have direct contact with key people within the lenders head office senior underwriting teams and hopefully, like us, will be able to base your earnings on a simple multiple of your contract rate alone.

This means that you don’t have to rely on the traditional method of using accounts, which may not fully reflect the total earnings that you have at your disposal, for income verification on a mortgage application.

[Fred Bloggs]

Let me guess. You'd be quite happy to help a freelance worker get a mortgage, eh?

[DimPrawn]

I'm not sure what the fuss is.

They're banning self cert, this is where no evidence of income is required.

For contractors, surely producing company account figures is all that is required, or showing bank statements with income from invoices into the company, contracts etc.

No different from a permie producing a wad of payslips.

[Spacecadet]

Or a letter from the accountants showing earnings for the past x years

[sasguru]

So what you're saying is that "liars mortgages" as they were dubbed in the US are alive and kicking in the UK?

[Platypus]

"liars mortgages"

Nothing upsets people more than seeing someone else get something with little effort when they themselves had strived to achieve the same.

Isn't envy a sin ?

[sasguru]

Nothing upsets people more than seeing someone else get something with little effort when they themselves had strived to achieve the same.

Isn't envy a sin ?

Eh?

[d000hg]

I'm not sure what the fuss is.

They're banning self cert, this is where no evidence of income is required.

For contractors, surely producing company account figures is all that is required, or showing bank statements with income from invoices into the company, contracts etc.

No different from a permie producing a wad of payslips.

A bit sticky if you have been contracting / self-employed for under 3 years or whatever the period is. Can you submit payslips for the previous period to make it up to 3 years? Or do they want to see that your self-employment has consistently been profitable?

What happens if your annual figures are varied? Say year one you work 250 days at £400, then year 2 only 100 days at £250, before improving again in year 3. How do they decide the 'income'? Lowest from 3 years, average,...?

[DimPrawn]

A bit sticky if you have been contracting / self-employed for under 3 years or whatever the period is. Can you submit payslips for the previous period to make it up to 3 years? Or do they want to see that your self-employment has consistently been profitable?

What happens if your annual figures are varied? Say year one you work 250 days at £400, then year 2 only 100 days at £250, before improving again in year 3. How do they decide the 'income'? Lowest from 3 years, average,...?

Not really. As permie they just want to see 6 months pay slips.

If you've just gone contracting you could show the company bank account showing 6 invoice payments. As the director, that money after tax is all yours, so where's the problem.

I'll say it again. Self cert is where you produce no evidence of income whatsoever.

People are confusing self cert (liar loans) with self employment.

[BrilloPad]

In light of all the recent headlines on the FSA banning "self-cert mortgages" and continued tightening of lending criteria for self-employed workers we have posted an article <removed by mod> on our web site that address contractors concerns about how these changes might affect their chances of getting a mortgage.

But even in these difficult financial times securing a mortgage does not need to be an issue for a Contractor. The key is to ensure that the mortgage application is properly packaged and is placed in front of the right decision makers within the lending institutions.

An experienced Contractor specialist mortgage broker will have direct contact with key people within the lenders head office senior underwriting teams and hopefully, like us, will be able to base your earnings on a simple multiple of your contract rate alone.

This means that you don’t have to rely on the traditional method of using accounts, which may not fully reflect the total earnings that you have at your disposal, for income verification on a mortgage application.

No! No! No!

What you should have done is just ask the question "How will the "Self-Cert" ban affect Contractors" : then slipped in your thoughts using sockpuppets.

Spam is just not the same anymore. 1/10. Must try harder.