Initial mortgage declines are now final - don't take the chance of going it alone

Mortgage lender Abbey has announced that mortgage applications that do not meet their underwriting guidelines first time around will be declined and will not be reconsidered. Contractors run the risk of missing out on an Abbey mortgage so your application must be right first time around...

It is notoriously difficult for Contractors to walk into a High Street lender and secure a mortgage because the staff simply don't understand your contract-based employment status. In the current climate, this has been made even more difficult by cash strapped lenders tightening their mortgage criteria.

The Abbey has recently launched a changes to its application process, ostensibly with the aim of minimising their risk involved in lending to homeowners. As a result of these new guidelines, will make clear decisions about who to lend to and who to avoid but as such the decision to decline an application will be final. We view this as a cynical cost cutting exercise to prevent additional work as borrowers and their brokers try to appeal decline decisions.

Expert advice means you get it right first time

The Abbeys approach is indicative of an increasingly harsh lending environment and underlines the fat that the strength of a borrowers application at outset is key. For Contractors this is even more apparent.

Going directly to lenders such as the Abbey and asking for a mortgage based on your contract rate could be disastrous as they will probably look at the amount that you take home each month and assume that you cannot afford the repayments.

However, if you use a specialist Independent Financial Adviser then you are far more likely to see your mortgage application accepted. At ContractorFinancials, our expert advisers have built a strong relationship with the lenders that has enabled us to negotiate specialist underwriting terms for Contractors. We are able to secure your mortgage based on your contract rate alone which means you don't have to worry about how much you pay yourself or, for instance whether substantial pension contributions reduce your taxable income.

Many applications made by people directly to the lenders are submitted without the correct documentation or with information missing. This might result in your case being declined unnecessarily so our processing team will check everything over before your case is submitted to ensure that this won't hold you back. Our advisers are well versed in the guidelines that the Abbey and other institutions use to make their lending decisions and as such we are able to advise you on how to give your application the greatest chance of being accepted.

If your application is declined...

If you have been declined by a lender for whatever reason, then our advisers can search the whole of the market to find a suitable mortgage for your needs and we will help to ensure that the lender considers your application based on your contract rate.

In order to avoid the hassle and disappointment of trying to secure a mortgage on the High Street, Contractors may find it beneficial to seek expert advice.

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