Mortgage Tips & Advice

Since their inception, contractor mortgages have used day rates as the basis of affordability. A simple copy of a current contract, with renewal/extension where applicable, was evidence enough.

Since coming out of the first lockdown, many of our clients have seen lenders change tack.

Lenders still want to see the traditional income evidence. But they now also want to see SA302s.

This change has naturally worried many mortgage-holding contractors who still use LTD (PSCs) payment structures.

In this blog post, I hope to allay any fears. Plus, I’ll take a closer look at SA302s and how underwriters may want to use them from now on.

Continue reading about  Since when did mortgage lenders ask for contractor SA302s?

Mortgage Strategy published a thought-provoking article last month. Its premise suggests that self-employed borrowers get a raw deal with mortgage lenders.

Harsh, you might say. But I agree with the content…to a point.

The majority of self-employed workers do still struggle to prove their mortgage affordability.

The problem is often that they try to get approved at their local or a High Street branch.

But a generic advisor doesn’t understand (or can’t use) income listed as a net profit.

If the system’s broke, get a broker to fix it

So, what’s the answer? Do you forfeit the ability to buy your own home if you work for yourself? Continue reading about  Determining relevant self-employed income and lending criteria

Self-employed mortgages have become harder to secure since the credit crunch. That’s no surprise; advisors see most non-PAYE applicants as higher risk.

That said, since easing out of lockdown, lenders have redefined what classifies as risk. Mortgage lending criteria is changing daily for everyone, not just the self-employed.

There are still some self employed friendly lenders: lenders sympathetic to independents. But how do you know who the best self-employed mortgage lenders are? Continue reading about  Self-employed mortgage lenders

In recent years, there’s been a revolution in the way we work in the UK. Individuals’ mindsets have changed; we’re challenging the age-old 9-5. Independent professionals are incorporating their own companies. They’re building a unique brand of expertise in their field.

Moreover, they’re in demand in many high tech industries. Their flexibility will aid recovery from the pandemic sweeping the globe. So why aren’t mortgage lenders keeping up with the new way we’re working in the UK? Continue reading about  High St mortgages: a limited company contractor’s worst nightmare

There are two ways you can apply for a mortgage after your first year of trading. The fast, savvy way or the slow, painful approach.

The fastest way for self-employed people is to speak to a specialist mortgage broker. Not just any broker, but one who specialises in self-employed applicants. And that’s the key point, today.
Continue reading about  You can get a self-employed mortgage with 1 year’s accounts

Securing mortgage finance on the High Street is far from straightforward for the self-employed. Few lenders assess self-employed income in the same way.

Each bank or building society has its own idea of risk. That risk invariably transfers to independent professionals when they set out to get a mortgage. Here, we look at some of the danger signs. Continue reading about  How to evidence self-employed income to get competitive mortgages

What is it that mortgage lenders don’t understand about self-employed earnings? They’re not all as complex as advisors seem to make them.

For permies, it’s different: they present their P60, bank statement and a few wage slips, and: Bingo!

As long as their salary covers what they want to borrow and they have a good credit score, their mortgage is in the bag. Continue reading about  Mortgage lenders misjudge self-employed professionals

It’s no secret. If you’re self-employed and don’t work PAYE, you struggle with High Street mortgage lenders. But some lenders have thrown freelancers and contractors a mortgage lifeline.

A growing number of lenders are looking beyond beyond typical IT-based check-boxes. Continue reading about  Are mortgages for contractors easier than for self-employed?

ANY professional contractor can now apply for mortgages using their contract rate* with Halifax. This is an unprecedented strategic move by the UK’s largest lender.

Before this update, Halifax only entertained contractors working in the IT sector. Now, the bank has smashed barriers to entry by offering mortgages to freelancers in any niche.

We cannot stress enough what a turn in the tide this change in policy represents. Not only for the lender, but also for self-employed people.

Many independent professionals have fought tooth and nail to get mortgages up until now. And at last, their work has its reward. Gone are the blinkered affordability calculations and the biased restrictions! Continue reading about  Halifax Turns Tide by Availing Contractors of ALL Mortgages