Price reduction to the rate and mortgage application fee.
Miss D has been a working IT consultant for a number of years, and started to contract for the past six months. She is currently six months into a nine month contract, with work lined up for the later part of the year.
Her broker was looking for a lender who would use the contract value rather than six months’ worth of self-employed income based on accounts. This is where we came in.
- Is the applicant a professional? Yes, Miss D has been an IT professional for a number of years and therefore, has a track record of employment within the field.
- Does the applicant have a recorded two year contracting history? No, however, unlike some lenders this isn’t a problem as we can use Miss Ds’ first contract providing there is prior experience in her industry – which there is. We also took her daily rate and assumed a five day working week and a 48 week working year (to pre-empt holiday and time-off) to assess income and affordability.
- Are there any employment gaps? No as Miss D finished full-time employment and moved to contracting within one month. Usually, we would like to see no more than three months break between contracts.
- Are there any future contracts confirmed? Yes, not only does Miss D have three months left on her current contract, she has future work lined-up.
So, did we help Miss D obtain a mortgage?
We were happy to lend to Miss D as her income from contracting was expected to be higher and we felt comfortable she would be able to make the monthly repayments.
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