Mortgage enquiry refused despite high EK- freelancing for less than 3yr

19 posts in this topic

Hi Together,

Both me and my partner are EU members, she is actually German.

She works as a permanent with a yearly compensation of +35k brutto, and I have been freelancing for 2 years in IT on some extremely rewarding projects.

 

We applied for a 300k mortgage with 90k capital, and I was told by a broker that is tied to Allianz but said he checked with hundreds of banks, that I have no choice but to wait at least another year before I could possibly get a mortgage.

Problem is that the property we are keen on buying (for our own use, in Hamburg) will not wait a whole year for us.

 

Is there really no hope for freelancers who didn't pass the 3yr criteria, no matter what?

 

Any advice on capable brokers who could guarantee getting a mortgage offer for us would be much appreciated

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I don't know if it is obligatory or not , but as an IT freelancer I was also told that despite high income I should ask after I had completed 3 years.

After 3 years with good income and if possible steady and increasing , things are quite easier.

 

I would recommend that you go to an independent Broker not tied to a bank to explain it correctly . I went to Interhyp and Dr.Klein, both were very good, explained everything and gave 3-4 very good offers. If only it was easier to find the right house... :D

 

Good luck

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22 minutes ago, Alexnf said:

I don't know if it is obligatory or not , but as an IT freelancer I was also told that despite high income I should ask after I had completed 3 years.

After 3 years with good income and if possible steady and increasing , things are quite easier.

 

I would recommend that you go to an independent Broker not tied to a bank to explain it correctly . I went to Interhyp and Dr.Klein, both were very good, explained everything and gave 3-4 very good offers. If only it was easier to find the right house... :D

 

Good luck

Thanks for the response.

Unfortunately the property we want to buy will not sit around and wait for me to gain another year of freelancing, so waiting is not an option for us :(

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An (expensive) way around might be getting a bank "Aval" (i. e. surety) from a bank of your home country for that first year. This should be accepted by your German bank. When I last looked into this (more than 10 years ago) fees would have been in te range of 1% to 1.5%/year just for the aval.

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4 minutes ago, jeba said:

An (expensive) way around might be getting a bank "Aval" (i. e. surety) from a bank of your home country for that first year. This should be accepted by your German bank. When I last looked into this (more than 10 years ago) fees would have been in te range of 1% to 1.5%/year just for the aval.

We will look into it as a last resort, thanks @jeba

Ideally sorting it out locally without involving a bank from my home country would be preferable.

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Nonsense. Lesson Nr. 1, never talk to someone who is aligned to Allianz or any other organisation. Contact an independent adviser in these things. There are some listed here in the business directory. 

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6 minutes ago, Fr. Ted said:

Nonsense. Lesson Nr. 1, never talk to someone who is aligned to Allianz or any other organisation. Contact an independent adviser in these things. There are some listed here in the business directory. 

We are also waiting for feedback from the mortgage broker of the real-estate company, who probably has a personal interest in helping us with finding financing, regardless with which bank.

Our first feedback, though, was from the broker associated with Allianz, who said that no one wanted to sponsor us following his enquiry because of my <3yr freelancing. So naturally we're stressing that it means only bad news for us. That negative first feedback put us at a great deal of stress over the whole topic.

 

I can only see CR&Cie listed in the directory.

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CR@Cie aka @Starshollow on this forum is a top address for professional advice, venomann. Very well- known on this forum on the Finance threads.

I am a professional independent insurance broker and authorised advertiser. Contact me.
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If @Starshollow thinks we can definitely secure a financing option despite my situation, we will be happy to use his assistance.

 

Otherwise if anyone else knows anything, we keep every option open.

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I have no idea, venomman, if Starshollow can help. Maybe contact him?

I am a professional independent insurance broker and authorised advertiser. Contact me.
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11 hours ago, john g. said:

I have no idea, venomman, if Starshollow can help. Maybe contact him?

I am a professional independent insurance broker and authorised advertiser. Contact me.

He recently was elected mayor of his town. Maybe that will keep him busy enough and may explain why he seems to have less time for TT? So I´d rather contact him via his own website rather than via TT.

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On 03/08/2020, 12:17:20, venomman said:

Both me and my partner are EU members, she is actually German.

Nationality should not make any difference in theory, unless a person is non-EU and non-EFTA.

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A 300K house with 90k deposit doesn't sound out of reach (if your freelance status is a factor I can't say) and I am not sure a broker connected to any bank would have checked 100s of other banks..

 

Starshollow would be a good place to start, he has helped lots of people here on TT.

 

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@venomman I work with Starshollow re mortgages. If you have two full years of accounts submitted and taxes paid then yes, there should be no issue. If you have not completed two full years of financial accounts you need to do so. PM me if you need more precise info.  

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On 4.8.2020, 08:21:37, jeba said:

He recently was elected mayor of his town. Maybe that will keep him busy enough and may explain why he seems to have less time for TT? So I´d rather contact him via his own website rather than via TT.

 That is very true..though I will continue to offer free and unbiased advice here on Toytown. Just so the first 2 months in office did not allow for much spare time to do that, since the pandemic crisis required my attention full scale.

But, as can be seen above, our team of advisors (including the director, my wife, Nora Ott) is still going strong and @Paul@CRCIE is our in-house mortgage expert and can certainly assist you there very well.

 

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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On 8/4/2020, 8:21:37, jeba said:

He recently was elected mayor of his town. Maybe that will keep him busy enough and may explain why he seems to have less time for TT? So I´d rather contact him via his own website rather than via TT.

Wow, congrats Starshollow..

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12 minutes ago, cb6dba said:

Wow, congrats Starshollow..

Thanks... I grew up there (even though I now live since 2004 in the neighbour town of Schäftlarn) and it is great to be back in politics again.

Another good article (in German) is this one here: https://www.sueddeutsche.de/muenchen/landkreismuenchen/kommunalwahl-in-baierbrunn-patrick-ott-1.4862706

 

But, as said above, after a short while of radio silence on my behalf, I'll be back giving regular info and advice here on Toytown. And will soon start an additional info-website/blogg for Expats in Germany on all financial and insurance topics with tons of free advice. Probably starting late in September, watch out then for info from me when the new blogg starts.

 

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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Congrats, Pat🙏🏻👍🏼

I am a professional independent insurance broker and authorised advertiser. Contact me.
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