Mortgage Blog

Why transparency about our mortgage lenders is a no-brainer

Posted by John Yerou on June 23rd, 2014 in Mortgage Blog

The decision to be so transparent about our contractor mortgage lenders is somewhat unprecedented. When I first informed our brokers, you needed a chainsaw to cut the tension. Whilst I understood their reservations, neither they, we nor you need worry.

That's because we deal at a level beyond the advisers at call centres and in your local branch. It's not that we don't trust untrained advisors to reward you with the mortgage your earnings deserve…

…oh, hang on. No, that's a fib. It is that we don't trust them with your contract income. But that they don't recognise your potential is not always their fault. Nor yours. Nor ours.Continue reading about  Why transparency about our mortgage lenders is a no-brainer

Mortgage challenges for contractors: responsible lending

Posted by John Yerou on March 17th, 2014 in Mortgage Blog

There are many myths about the inaccessibility of contractor mortgages.

It's easy to see why. Many high earners with impeccable credit history can struggle to find willing lenders.

This spurious 'knowledge' makes it natural to assume that a poor credit score is an immediate barrier to entry.

That's not always the case.

Our team of brokers works with many specialist lenders. We have to in order to 'interpret' contract income for underwriters.

There are even some, like Kensington Specialist, who'll work with contractors who have less-than-perfect credit.

Here's how it works (and why it might not for you!)…
Continue reading about  Mortgage challenges for contractors: responsible lending

Kensington Shakes Up Contractor Mortgage Market

Posted by John Yerou on February 21st, 2014 in Mortgage Blog

Specialist lender Kensington has declared its doors wide open to contractors. Even contractors who've struggled to secure a mortgage before could now qualify! How positive a start to 2014 is that?

There are now a variety of deposits and interest rates on offer for contractors with any level of income. This is a game-changing move by Kensington and not unwelcome.

Independent professionals beyond IT or Oil & Gas industries have struggled, to date. Even those earning less than £312.50 per day/£75k gross earnings have come up short.

Now, restrictions imposed by some contractor-friendly lenders need not be a barrier.

There's an added bonus, too. The early indication is that a less-than-perfect credit history may not be an instant "Computer says, 'No!'". Is that worth a closer look? We think so…

Continue reading about  Kensington Shakes Up Contractor Mortgage Market

The neutered role of today’s bank manager: a painting by numbers

Posted by John Yerou on February 10th, 2014 in Mortgage Blog

What my dad’s bank manager taught me about security:

Do you know what used to get on my nerves about my dad’s bank manager? Apart from the never-quite-straight wig and invisible cigar fumes leeching from his every pore?

It was the way he insisted upon ruffling my hair every time I met him. Back then, those meetings (and subsequent barnet-buffeting) were all-too-often occurrences.Continue reading about  The neutered role of today’s bank manager: a painting by numbers

Help to Buy Contractor Mortgage Guide

Posted by John Yerou on October 17th, 2013 in Mortgage Blog

Update, September 2021

n.b.:

This page is for historical value only!

In 2021, Help to Buy changed beyond description, with only two government "Affordable Home Ownership" schemes now available for new applicants.

You can find info about the new schemes on our updated Help to Buy/Shared Ownership guide page. Thank you.

</update>

Continue reading about  Help to Buy Contractor Mortgage Guide

Was there ever a case for Self-Cert mortgages?

Posted by John Yerou on May 16th, 2013 in Mortgage Blog

The Self-Cert had no place for freelancers and contractors who could have qualified for contractor mortgages. Yet, for tradespeople who came up blank elsewhere, self certification of earnings served its purpose.

Mortgage rejection often occurred when self-employed people kept insufficient trading accounts. Or, like many freelancers, they worked on ad hoc projects and had no regular income.

So, what to do now that self-cert mortgages, or "liar loans" as they became known, are no longer available? There is (and was) a better way to buy a home for short-term contractors. This is it…
Continue reading about  Was there ever a case for Self-Cert mortgages?

Halifax offers mortgages to ALL professional contractors

Posted by John Yerou on May 15th, 2013 in Mortgage Blog

Convincing major high street banks to consider all independent professionals' mortgage applications isn't easy. We know. We've spent years 'at the coal face', talking to lenders up and down the country.

So, when Halifax told us it was extending its IT Contractor mortgage policy to all contractors, it was cause for celebration. A little one, at least.

Whilst the news is a step in the right direction, the bank hasn't yet thrown caution to the wind.

There are caveats to their lending criteria if you don't work in Information Technology.

In this post, we catalogue what hurdles non-IT contractors have to meet to get a Halifax mortgage.

Continue reading about  Halifax offers mortgages to ALL professional contractors

Are you sitting on an interest-only timebomb?

Posted by John Yerou on November 21st, 2012 in Mortgage Blog

There are thousands of self-employed people sitting on interest-only mortgages. Our fear is that many won't have sufficient funds to repay the outstanding mortgage loan amount when it's due.

If you dread exactly that with your situation, you're not alone. It's not too late to switch to a capital and interest (repayment) mortgage. But the time to ensure you're not left with a huge bill you can't pay is now.
Continue reading about  Are you sitting on an interest-only timebomb?