Contractor with less than 2 years accounts raises capital on family home

We were approached by a married couple looking to remortgage their family home.

The couple were hoping to use the capital raised from the remortgage to purchase their first buy to let property, but had been struggling to secure finance due to their employment status.

The husband has been contracting for an investment bank on six month contracts for less than two years and the wife is currently unemployed. The client was also looking for at least 65% LTV to release £585,000.

For this reason we needed to find a lender who would accept a contractor and base the calculations on the contractor’s day rate – pro rata’d to 46 weeks per year, rather than on taxable income.

A high street bank was able to offer us the following terms:

Property value: £900,000

Loan amount: £585,000

LTV: 65%

Rate: 1.99% 2 year fixed

Term: 25 years capital and interest

Lender arrangement fee: £999

Mortgage payment: £2,476

Consultant: Jeni Browne, 01732 471 647