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basilspinone
15th June 2005, 19:16
OK guys, here's the low down

I started contracting in November (with Parasol and switched to GiantGroup in March).

I would appear that nobody is willing to give me a mortgage of 90% as I have less than a years contracting experience!!!

I am really finding the whole system very discriminating against the self employed (including those who, like myself, have NEVER been out of work!!!!)

any suggestions or stories of past experience much appreciated.

AtW
15th June 2005, 19:20
So you want to buy house _now_? No wonder nobody is willing to give morgage of 90%!!!!

DimPrawn
15th June 2005, 19:22
Oh Dear. A disguised employee wants a mortgage eh? I think the government should BAN mortgages. And contractors. And disguised employees (oh they already have with something called IR35).

basilspinone
15th June 2005, 19:24
dude

it's a case of current house sold and contracts exchanged, house we were buying has fallen through!! which means finding a new house and mortgage to go with it!! and finding a house with stables for horses and room for children, dogs, cats etc is a lot harder than it seems!!!

MilanB
15th June 2005, 19:25
90% mortgage,

you must sleep well !

Milan.

basilspinone
15th June 2005, 19:33
guys,

if youre gonna take the pi$$, don't bother! this was a serious question!

EternalOptimist
15th June 2005, 19:47
dont take it badly corn pone, the b@stards take the p1ss out of everyone.
Most contactors that I know dont have a mortgage, they work like ***** for a few years then buy a place. Hence the p1ss - take.

AtW
15th June 2005, 19:51
> this was a serious question!

You should have directed your question to threaded then.

fiddleabout.

dodgy
15th June 2005, 20:06
"I started contracting in November" && "have NEVER been out of work!!!!" = silly question = silly answers

You may never have been out of work, but that doesn't mean anything as you've only been contracting (self-emplyed) for 6 months and thats the bit the banks care about. Should have applied before you went freelance.

MilanB
15th June 2005, 20:06
"it's a case of current house sold and contracts exchanged, house we were buying has fallen through!! which means finding a new house and mortgage to go with it!! and finding a house with stables for horses and room for children, dogs, cats etc ",

it all sounds very 'eau jolly hockey sticks, right ho!'

and all financed on the never never

nice !

as the right honorable gentleman pointed out, a contractor shouldn't need a mortgage and certainly not a 90% one

are you sure you are not related to Rosie Millard (http://www.timesonline.co.uk/article/0,,2092-1551813_1,00.html) ?

Milan.

threaded
15th June 2005, 20:08
This has got to be a troll. No one is that daft? hmm....

thunderlizard
15th June 2005, 20:30
I'm reliably informed by the Ocean Finance adverts that Ocean Finance will lend you money when nobody else will. And if you have a face like the side of a sofa.

DimPrawn
15th June 2005, 21:36
I know it will probably upset your snobby nature, but you could RENT a house for six months. In that time you will have more contractor history and a chance to look around for a bargain and time to secure a decent mortgage.

Now before you say "rent money is money down the drain" what exactly is interest money on a 90% mortgage? Money down the drain.

planetit
15th June 2005, 23:06
Alternatively you could ignore the advice of knobby contractors and take control of your own life by seeking the advice of a professional. Contact www.contractormoney.com/contractormortgages.html (http://www.contractormoney.com/contractormortgages.html)

You will find them very helpful.

Lucifer Box
16th June 2005, 07:58
Alternatively you could ignore the advice of knobby contractors and take control of your own life by seeking the advice of a professional.
Planetit, that's not the CUK way.

But yes, as most mainstream lenders will only look at you if can produce three years worth of auditted accounts you have these options:

1. Go to a specialist contractor mortgage co like those Planetit highlights, although that is not certain as you only have 6 months under your belt.

2. Rent until you have those 3 year accounts and go mainstream

3. Briefly drop back into permiedom and blag it.

What are your property finance arrangements at present?

s2budd
16th June 2005, 08:16
Hello

Forget the silly comments. Some people are just Ignorant or rude, or both.

I would go and see an IFA and pay them to do the searching for you.

OrangeHopper
16th June 2005, 09:13
Are you saying you didn't have a mortgage on the place you just sold.

I had not problems getting another mortgage because I had already had a previous mortgage with another provider.

privateeye
16th June 2005, 09:21
go straight to a couple of IFA's and see who can organise the best deal. The high street outlets don't seem to have the special deals that IFA's get. A few years ago a Halifax branch turned me down but the IFA I went though got me a mortgage via the same - and there were no lies on the application.

stackpole
16th June 2005, 09:26
I would go and see an IFA and pay them to do the searching for you.
And their solution, no doubt, will include the best finders fee they can get, plus the highest commission they can get for life insurance, and possibly extra commission from a growth vehicle to pay off capital at the end of term.

But at least you'll get your mortgage.

Have you tried Motley Fool (http://www.fool.com/homecenter/homecenter.htm?source=LN)?

allanh1
16th June 2005, 09:29
Speak to a financial advisor, You may heave to self certificate to get the mortgage for now but once you have it its far easier to swap.

BobHope2
16th June 2005, 09:37
>> I would go and see an IFA and pay them to do the searching for you.

You'd be better sticking your head in the oven than going to see most IFAs.

Paco
16th June 2005, 09:40
I echo planetit's comments regarding contractormoney.com, they're very good. Talk to Tony Harris.

And don't listen to the knobheads on here, they're either spouting bollox or sad little men with no wives or children who desparately squirrel away their money working every hour possible whilst life passes them by.

hattra
16th June 2005, 10:00
An IFA is probably a good bet - they have to tell you what their commission is these days, so you can get a good idea of how straight they are being.

If you can't get a re-mortgage through your current lender, you may have to go down the "self-certification" route - its not difficult

NumptyCorner
16th June 2005, 10:16
Basil, I had a similar problem (except I had to transfer from 50% equity to 100%) which mean't reapplying for a mortgage. At first they wanted the 3 years of accounts malarkey but there is a way around it. As far as the bank is concerned the agency is effectively your employer, get the reference off them and fill the forms in as if your income were as an employee. If you are paying yourself 5k a year it may be a tad more difficult to explain.


PS ALM reminded me, DO NOT USE THE BRITANNIA BUILDING SOCIETY (or any of their associates)

ALM
16th June 2005, 10:19
basilspinone,

I wouldn't worry about it too much mate ... some lenders tend to kick up more of a fuss than others. I managed to land a second mortgage (on top of the first) with the Abbey despite only having returned to contracting for 6 months. They did require a reference from my workplace confirming my daily rate and the likelihood of renewal etc but the process was relatively pain-free.

Find out which lenders are most sympathetic to contractors and only make applications with them. I say this because having multiple applications rejected will be registered on your credit history and make it difficult to obtain mortgages elsewhere.

shaunbhoy
16th June 2005, 11:04
Ring SG Mortgage Services in Hitchin. They will guide you through self-certifying although you will probably need to settle for an 85% mortgage

hth

SB
;)

threaded
16th June 2005, 11:17
hattra: You know nothing. No, they do not have to tell you the commission on a mortgage. Only certain types of mortgage are even actually regulated. Some other products that you may buy around the mortgage may well be regulated. If you look closely you will find the mortgage is from one company and the other products from another. This simplifies paperwork as one company has to do "full disclosure" and the other doesn't.

threaded in "held non-ex board seats on a financial services co. and a mortgage co." mode.

IR35 Avoider
16th June 2005, 12:51
Another suggestion: actually do a calculation of what it would cost per year to rent a suitable place as opposed to buying. If it would cost less, rent.

For the purposes of the calcuation assume interest on a 100% interest-only mortgage - even if you mortgage is smaller, the equity represents capital that isn't earning a return elsewhere, and assuming 100% is the easiest way to try and adjust for the missing earnings.

stackpole
16th June 2005, 13:24
Move to Wales.

ASB
16th June 2005, 14:23
Threaded,

Cleary "held" old chap. At least I would sincerely hope so.

Since 31/10/04 Mortgages have been regulated (for want of a better word) by the FSA.

The current process for even getting quotes with the production of a KFD etc is a right pain in the butt.

planetit
16th June 2005, 14:57
You’re quite right ASB. I mean anyone who “held non-ex board seats on a financial services co. and a mortgage co." but was ignorant of the FSA rules, might find their company was closed down.

If it got really bad they might have to flee the country.

To somewhere like Denmark for instance.

stackpole
16th June 2005, 15:44
Threaded knew that. Easy mistake to make with all that buzzing backwards and forwards in time - he just got confused and thought he was posting a year ago.

threaded
16th June 2005, 17:23
ASB: Suggest you do some research and then we might carry on this conversation.

The date you give, 31/10/04, applies to Residential Mortgages, and not to all of them either.

As I understand it, the original poster is a contractor, so will be using parts of their house as offices, also he has horses etc. so there will be a large amount of land attached.

I would suggest that it is not a foregone conclusion that the property would fall under the FSA rules you imply with that date.

plane t1t: Well, you are as usual, a plane t1t.

DimPrawn
16th June 2005, 17:28
I can smell BULLSHIT......:smokin

SupremeSpod
17th June 2005, 08:11
I can smell BULLSHIT.....

That's just Threaded, he's not brushed his teeth again!