Mortgage Blog

How can I get a mortgage working through an umbrella company?

Posted by John Yerou on July 20th, 2018 in Mortgage Blog

Even with payslips, High Street mortgages elude umbrella contractors.

You're an experienced contractor working in the public sector. Over time, you've become smart. You predicted the issues with automatic payroll. So on balance, you opted to work through an umbrella company.

You're not alone. Nine in every ten public sector contractors now use umbrella company payment structures.

And now that you've got payslips, you think:
“Yes! Getting a mortgage now will be a doddle! Right? Anything's gotta be easier than that last fiasco, using your limited company accounts.” Right?

No, not necessarily.Continue reading about  How can I get a mortgage working through an umbrella company?

The Great Mortgage Rip Off: How Estate Agents Cash In

Posted by John Yerou on April 18th, 2018 in Mortgage Blog

Joe Public's largest ever financial commitment is often buying their home. As you'd expect, handling that transaction assumes a great deal of responsibility.

But the fact is, estate agents are ripping homebuyers off when it comes to the mortgages they offer.

The government is planning to put a stop to these practices. Until that's resolved, current practices are bad enough for unsuspecting homebuyers.

But it can get worse when estate agents force their own mortgage lenders upon specialist borrowers.

In the worst case scenarios, estate agents nominating an unqualified, non-specialist lender can spell disaster for contractors. Today's post outlines how you can—and should—avoid mortgage lenders who just don't grasp how you work.

Continue reading about  The Great Mortgage Rip Off: How Estate Agents Cash In

Offset mortgages: a “golden opportunity for contractors”

Posted by John Yerou on May 17th, 2017 in Mortgage Blog

Contractors ignoring offset mortgages could be overpaying £1,000s in needless interest. Recent research, reviewed here, highlights the scale of missed opportunity.

Table of contents:

• What can contractors gain from offset mortgages?
• Start saving from Day 1;
• How research helps us understand this strange aversion;
• Accord research;
• Yorkshire research;
• Why the mass misconception of how offset lending works for contractors?
• What savings can count towards offsetting my interest?
• How does an offset mortgage work? An example using more than one savings account;
• What are the different types of offset mortgage?
• Our conclusion.

Continue reading about  Offset mortgages: a “golden opportunity for contractors”

Can I get a mortgage on a fixed term or zero hours contract

Posted by John Yerou on March 29th, 2017 in Mortgage Blog

Can fixed-term contract employees get contractor mortgages?

At Freelancer Financials, we’re used to people using us as a last resort. Mention any other type of employment contract to a lender than 'permanent', and, well. It’s as if a Dementor has sucked all the joy from your advisor’s world. Then, as a consequence, yours.

Let's make no bones: our main client profile is that of the professional contractor. They often work through agencies and pay themselves through a limited company structure.

But there is another type of contract that's becoming ever more popular. It's a mix between permanent employment and professional contracting.

Ladies and gentlemen, please let me introduce the fixed-term contract.

Continue reading about  Can I get a mortgage on a fixed term or zero hours contract

Does Santander Do Contractor Mortgages?

Posted by John Yerou on December 5th, 2016 in Mortgage Blog

Santander might be a great mortgage lender for permies on a PAYE salary. But for a contractor looking for a mortgage based on their gross contract rate or net profits? Then Santander is not the ideal bank for you…
…at least not if you want to buy a home that matches your earning capacity.

It can get complicated. Technically, a contractor could get a mortgage with Santander. And with the resources the bank has, you’d think it would be a safe bet:

• 1,000+ branches in the UK;
• those branches manned by 20,000 staff;
• and its legacy accounts:
  • Abbey;
  • Bradford and Bingley;
  • Alliance and Leicester.

But no. In this case, big isn’t beautiful. The bank’s advisors can only offer you a mortgage on a self-employed basis. Going that route, we know from experience, is both painful and demeaning to contractors. But there is a better way.
Continue reading about  Does Santander Do Contractor Mortgages?

Can I get Contractor Mortgages at Chelsea Building Society?

Posted by John Yerou on December 5th, 2016 in Mortgage Blog

Knowing where you stand with Chelsea Building Society is somewhat unclear. It hadn't used to be that way. But, as a contractor today, the building society’s lending criteria is far from straightforward.

As for the Chelsea brand itself, that's also been difficult to pinpoint since the credit crunch.

The reason for writing at all about Chelsea Building Society is to forewarn contractors. The only time we ever come into contact with them is by way of complaint. Here’s our overview of why .Continue reading about  Can I get Contractor Mortgages at Chelsea Building Society?

Clock ticks down towards Osborne’s legacy landlord tax

Posted by John Yerou on November 29th, 2016 in Mortgage Blog

Buy-to-let mortgages have been a useful tool for contractors over the years. The rental income ensures continuity of cash flow when they’re not working.

When they are contracting, that same income is a great way to shore up their pension. But changes are afoot, with the Chancellor riding the chariot.

What will these changes mean for contractor landlords?

Continue reading about  Clock ticks down towards Osborne’s legacy landlord tax

Buying a New Build property – 10 Top Tips for Contractors

Posted by John Yerou on November 21st, 2016 in Mortgage Blog

Buying a home as a contractor can be an exhilarating trip. Even more so when that home is a new-build property.

There’s excitement, expectation and, of course, dread. You’ll be the first person to ever live under that roof, more often than not*.Continue reading about  Buying a New Build property – 10 Top Tips for Contractors

It’s a prime time for contractors to remortgage off their SVR

Posted by John Yerou on June 24th, 2016 in Mortgage Blog

We know that homeowners remortgage for many reasons. They may want to:

• save money by switching to a new introductory offer;
• release equity for home improvements, travel or a major life event;
• reduce the term of their mortgage with a new deal.

But are enough contractors using the opportunities to get a new fixed rate deal? With the average 'switcher' saving over £2,000 a year*, remortgaging is a smart move. Or not, as the case may be.

Continue reading about  It’s a prime time for contractors to remortgage off their SVR