Mortgages - Do I really need a broker?

[mcskiver]

I'm in the process of arranging a mortgage with Contractor Financials, but they can only offer deals via Northern Rock and Clydesdale Bank.

Also, the deal they're offering me from Clydesdale has additional fees that aren't on their website. Contractor Financials say this is because they have different products for contractors...

So do I really need to take the "specialist contractor" route for a mortgage? I've been contracting for four years, and have 3 years of accounts. I tried going direct with my own bank - HSBC - and got nowhere. They offered me up to £100k...

I've seen people on here saying there's no need to use a broker, and others recommending them. In my experience, the deals are worse through a broker, but impossible otherwise. Can anyone clarify how I might get a comparable mortgage amount without a broker?

[northernladuk]

A) This gets asked frequently as I am sure you can imagine. The search function using the word mortgage and narrowing scope to accounting section will bring up more threads than you can care to read on exactly this question

B) You don't need a specialist mortgage. Most providers have processes in allowing your accountant to prove your income. You also don't need 2 years submitted accounts. They will take whatever you have contracting and make up the 2 years with permiedom or whatever after as well.

I seem to think some of the other threads mentioned contractormortgages.com as well but don't quote me on that. DYOR

I do believe there are providers out there (Halifax was one???) that can offer mortgages based on your daily rate as well but this option scares me a little. Haven't look in to them so again DYOR

And seems I am at it here is the search for mortgages in Accounting. Might try with narrow search term but its a start.

mortgage site:forums.contractoruk.com/accounting-legal/ - Google Search

[Mister Clark]

I remortgaged last month to a NatWest offset mortgage without a broker.

All they required were my last 2 years worth of account - no reference letter from my accountant or any of that old tosh.

They were very helpful and it went through incredibly fast.
I would say NatWest 'get' contracting and our situation, d I found the opposite with HSBC. They couldn’t grasp the fact I can pay myself 7k-ish a year but can still afford a £700 a month mortgage.

The NatWest fee was £500 - that’s standard for the offset. They paid all the other fees.

[Scrag Meister]

I currently have 2 mortgages, Main one with Santander, another smaller one with C&G.

Never used a broker and they only needed 2 years accounts. Both these mortgages were started Nov 2009 so lots has happened in the meantime.

I would avoid a broker in the first instance. I checked some broker offerings before approaching Santander and C&G and their rates were not very favourable at all.

Currently on 0.49% above base with Santander, and 3.29% above base for C&G, but am clearing this one in the next few years needed as a deposit.

Look around yourself and don't be lazy relying on a broker, you could save £thousands.

[quackhandle]

I've just gone through this and I have felt like I have jumped through hoops at times to get what was asked. Didn;t use a broker, went with Leeds BS to remortgage. I sent them three yrs accounts but they still wanted more info from my accountants (NW) but they then ask me for stuff that the accountant can already tell them.
Fingers crossed it's all going through now.

As other posters have stated its not hard these days to compare, products/rates/fees etc.

just thought I'd add, the main issue I have had with trying to remortage is the differing values of my house (eg -their value is a lot less than mine) and how this affects the LTV.

qh

[mcskiver]

Thanks for all the replies so far.

I have searched the site, but most past thread responses say to use a broker. There are a smaller number of responses who say you don't need a broker. I just wanted some clarity about how people could avoid using a broker as I struggled with HSBC. Thanks to the feedback here it may just be specific lenders that are the problem, so it sounds like it's worth at least approaching some alternative mortgage lenders.

I'll update this thread when I find out how it goes...

Cheers!

[redgiant]

Thanks for all the replies so far.

I have searched the site, but most past thread responses say to use a broker. There are a smaller number of responses who say you don't need a broker. I just wanted some clarity about how people could avoid using a broker as I struggled with HSBC. Thanks to the feedback here it may just be specific lenders that are the problem, so it sounds like it's worth at least approaching some alternative mortgage lenders.

I'll update this thread when I find out how it goes...

Cheers!

Met an advisor from the Halifax about my current mortgage a couple of weeks ago and he said IT Contractors are treated differently than regular self employed and can offer daily rate x 365 x 5 (way more than you'll probably need!) All they needed was last years accounts. Tempted to go with them again when I move.

If you are in London i'm happy to supply the details of the advisor who spoke to me there.

[jmo21]

Met an advisor from the Halifax about my current mortgage a couple of weeks ago and he said IT Contractors are treated differently than regular self employed and can offer daily rate x 365 x 5 (way more than you'll probably need!) All they needed was last years accounts. Tempted to go with them again when I move.

If you are in London i'm happy to supply the details of the advisor who spoke to me there.

they multiply the rate by 365 to get some kind of yearly figure?!? WTF!

[redgiant]

they multiply the rate by 365 to get some kind of yearly figure?!? WTF!

Yep ... this wasn't from a broker but from one of their inhouse advisors so it's probably not tulip.

[Notascooby]

I went via contractor financials but it was for a buy-2-let and they sorted me out with B&M (Lloyds).

As I was new to contracting, I ddin't have any prepared accounts etc so found them very straightforward although they did keep changing quotes left right and centre.

Just been through them for life and illness insurance, initially I wonder why they get so much commission for doing bugger all...but then i think of my rate and think - jolly well earnt!