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Is it possible to get a first time buyer mortgage as a contractor?

FORCENEUF
by FORCENEUF 01 January 2010  |  Comments 4 comments  |  Love Love  0 loves

I've got around £30,000 in savings for a deposit and am looking to buy a property for about £200,000. This would make my deposit worth 15%. I earn £50,000 as a banking contractor but I'm currently on a rolling contract of 3 months. I've worked for the company for over two years. Would this make getting a mortgage any easier?

many thanks

Philip

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Comments (4)

  • MikeGG1
    Love rating 824
    MikeGG1 posted

    If you are on a 3 month rolling contract, you require more notice than most so-called 'permanent' employees. However, without the redundancy pay.

    You should not have too much difficulty getting a mortgage as long as you stress the notice period rather than the contractor aspect.

    Try contacting the LoveMoney mortgage team:

    Tim Wilson

    Mortgage Sales Manager

    Email: tim@lovemoney.com

    DDI: 020 7297 8163

    Fax: 0800 066 9030

    Good luck

    Mike

    Posted on 01 January 2010 | Love Love  0 loves Report
  • Swarbs
    Love rating 272
    Swarbs posted

    With two years of employment history, you should be able to fill the requirements as a self employed applicant. Most mortgage providers will consider you if you have proof of earnings and accounts, and if you take this route your current three month contract is just a bonus. Like Mike says, the best bet is to call a mortgage broker like the lovemoney team, who will be able to advise you which banks are most amenable to self employed / contractors, and what the best deals are to go for.

    Posted on 01 January 2010 | Love Love  0 loves Report
  • swordfish
    Love rating 2
    swordfish posted

    Normally contractors require to show 3 years accounts to get a mortgage. As for an IFA, I've heard good things about these guys, but haven't had any dealings with them myself...

    http://www.contractormoney.com/

    Posted on 02 January 2010 | Love Love  0 loves Report
  • TheWelshman
    Love rating 62
    TheWelshman posted

    Hi Forceneuf,

    Thanks for your questions!

    As you are probably aware the mortgage lenders are tightening up on all borrowing so its not as easy to get what you want!

    I did some research for you with one of the lenders and asked the question if they would lend on this scenario and they couldn't give me a definite yes but they would give me a list of things that is needed for them to look at.

    1. Copy of the last 12 months contracts

    2. A letter from the employee stating that it is "likely" that the contracts will be renewed

    Number 2 is probably the hard one, as a lot of employers will not like to put something in writing about contracts.

    If you would like me to look a bit closer, you can email me tim@lovemoney.com or give me a call 0207 297 8163

    Regards

    TheWelshman a.k.a Tim Wilson ( a member of the lovemoney.com mortgage team )

    Posted on 04 January 2010 | Love Love  0 loves Report

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