Self build mortgage.

[Mike_scotland]

Hi guys,

 

Quick question we are looking at self build mortgages for a build in Scotland, does anyone know if you have a zero hour contract can you still get a self build mortgage as part of a joint application? , I thought maybe they would just take 50% your wage or something to be safe, consisently been working for same company for 6/7 years with continuous work and healthy looking p60s from previous years.

 

Anyone have experience in this? I'm led to believe scotland is different to rest of uk for lending in regards to this.

 

Thanks,

 

Mike

[Thedreamer]

2 hours ago, Mike_scotland said:

Hi guys,

 

Quick question we are looking at self build mortgages for a build in Scotland, does anyone know if you have a zero hour contract can you still get a self build mortgage as part of a joint application? , I thought maybe they would just take 50% your wage or something to be safe, consisently been working for same company for 6/7 years with continuous work and healthy looking p60s from previous years.

 

Anyone have experience in this? I'm led to believe scotland is different to rest of uk for lending in regards to this.

 

Thanks,

 

Mike

 

There are not loads of lenders in Scotland. Might be helpful if you say who are planning to go with?

 

I had regular overtime from working a hour later for three years and my lender wouldn't take this into consideration. My employer was understanding and agreed to change my base salary to incorporate this extra hour.

 

The amount they were prepared to offer was a lot less than the expected calculation on the lenders website. 

[Mike_scotland]

Hi Dreamer,

 

I'm not sure what company to go with yet, just heard there funny with zero hour for self build.

 

Thanks

[Ralph]

Quite a lot of lenders for standard mortgages will not lend if the principle applicant is on a zero hour contract. I think it may be ok if it's the second applicant as long as they don't account for a high percentage of the total income. 

 

 

[Mike_scotland]

I know rules are rules but its ridiclous, 100k a year zero hour vs 20k a year fully employed. They favour the 20k LoL!

[Ralph]

1 hour ago, Mike_scotland said:

I know rules are rules but its ridiclous, 100k a year zero hour vs 20k a year fully employed. They favour the 20k LoL!

All about the perceived risk I suppose. if you are a company director rather than an employee in the same company your going to probably pay a higher interest rate on a mortgage despite earning more.

[Mike_scotland]

Yeah, I just wanted to see other peoples experiences.

[Conor]

Try ecology, they are pretty flexible and didn't bat an eyelid when I went from fully time to part time after we signed with them.

[Thedreamer]

5 hours ago, Mike_scotland said:

Hi Dreamer,

 

I'm not sure what company to go with yet, just heard there funny with zero hour for self build.

 

Thanks

 

There is not much choice in Scotland.

 

As @Conor  says Ecology is one a few members have used. You get a lower interest rate depending on your SAP rating. 

 

I went with the Scottish Building Society I like this one because I could use a RCIS surveyor to provide certificate and I didn't need an architect or structural warranty. I feel the fees are reasonable.

 

Other choice buildstore, although they are brokers. Lots of fees but might be easier to get as your broker will do some of the work. 

 

Finally you got the revolving credit fund via Scottish Government, looked at this but put off by the 9% overdue interest. You also need to have a mortgage promise which also put me off. 

 

As far as I am aware that is it. 

 

I had to provide an letter from my employer confirming my contractual salary. 

[Mike_scotland]

30 minutes ago, Thedreamer said:

 

There is not much choice in Scotland.

 

As @Conor  says Ecology is one a few members have used. You get a lower interest rate depending on your SAP rating. 

 

I went with the Scottish Building Society I like this one because I could use a RCIS surveyor to provide certificate and I didn't need an architect or structural warranty. I feel the fees are reasonable.

 

Other choice buildstore, although they are brokers. Lots of fees but might be easier to get as your broker will do some of the work. 

 

Finally you got the revolving credit fund via Scottish Government, looked at this but put off by the 9% overdue interest. You also need to have a mortgage promise which also put me off. 

 

As far as I am aware that is it. 

 

I had to provide an letter from my employer confirming my contractual salary. 

I just find it mad, I thought they would of offered even half your salary or such like but seemingly zero contracts are a absolute no go.

 

No garuntee of hours but 6/7 years constant work with various p60s stating high 70s/80s k for all those years I feel should be taken into consideration.

 

Seemingly it's just scotland that's the awkward bit, I'll  need to write to miss sturgeon haha

[Thedreamer]

12 minutes ago, Mike_scotland said:

I just find it mad, I thought they would of offered even half your salary or such like but seemingly zero contracts are a absolute no go.

 

No garuntee of hours but 6/7 years constant work with various p60s stating high 70s/80s k for all those years I feel should be taken into consideration.

 

Seemingly it's just scotland that's the awkward bit, I'll  need to write to miss sturgeon haha

 

Yes a bit of joke as if you were self employed and showed net profit of £70-80k for a few years you would have been fine. Banks and building societies should view zero hours contracts as being comparable with sole trader/partnership income. 

[Mike_scotland]

My thoughts exactly.  If I was self employed you can get the boot just as quick as if your zero contracted.