Contractor mortgages

[BrilloPad]

You possibly can but it gets very complicated. Some require you've got more than half term of the contract left, others won't accept breaks of over 6 weeks etc. Don't quote me on those but it does make finding which you are eligble for a right pain in the arse. I'd deffo suggest getting one of the specialists to do the leg work.

+1. And if several check your credit rating it can look bad)

Just got extended so have a shiny new contract for them to lend me money.

No boomed thread?

[Lumiere]

Are there many lenders who would disregard the remaining length of the contract?

I tend to work on shorter contracts, 2-3 months in length, and it is very hard to time the mortgage as most will likely need an active contract when arranging mortgage offer and then at completion. I may have 1-2 weeks breaks between the contracts.

[northernladuk]

Best give one of the agents a ring. They are too complex for us to know them all. Freelance Finacials have always been helpful even when I didnt follow through with a mortgage.

[TheCyclingProgrammer]

Are there many lenders who would disregard the remaining length of the contract?

I tend to work on shorter contracts, 2-3 months in length, and it is very hard to time the mortgage as most will likely need an active contract when arranging mortgage offer and then at completion. I may have 1-2 weeks breaks between the contracts.

It depends how they evaluate your affordability.

If they are lending based on your overall income then they will probably want to see your tax return. If they are lending based on salary and profit they'll want to see your accounts going back a few years to check its stable or increasing. If they are lending based on your contract rate they will want to see your contract and look at gaps between.

No hard and fast rules though as each lender is different which is why it really is worth speaking to a broker who can advise the best option for you. For me it was Coventry based on net profit and accounts.

[Lumiere]

I spoke to Freelance Financials and they said I needed to have a long active contract to make things easy, still waiting for such contract opportunity one year later ..

want to see your accounts going back a few years to check its stable or increasing

I was lucky to have a big contract with some sub-contractors a couple of years ago, so since then my turnover is significantly "decreased" compared to that year.

Maybe SA302 is the best option for me as take home has been stable over the years. Are there any drawbacks with this approach other than limited choice of lenders ? .... Just realised that it will need to be a joint mortgage and her indoors does not fill SA returns, so won't be able to get SA302 for her.

p.s. Also if you were thinking of keeping your old house for BTL but not entirely sure if you wanted the hassle, now you would have to pay 10Ks in new tax for this privilege, right ? It means it will be a chain if you have to sell it, so need even longer contract to cover longer process period.

[TheCyclingProgrammer]

I was lucky to have a big contract with some sub-contractors a couple of years ago, so since then my turnover is significantly "decreased" compared to that year.

Don't rule it out. A lender may take an average of your net profit (plus your director salary) over the years.

Maybe SA302 is the best option for me as take home has been stable over the years. Are there any drawbacks with this approach other than limited choice of lenders ? .... Just realised that it will need to be a joint mortgage and her indoors does not fill SA returns, so won't be able to get SA302 for her.

Main drawback is if you've been keeping yourself under the higher tax threshold it will limit how much you can borrow. Only an issue if its not enough though!

This is why its best to speak to a specialist as they'll be able to evaluate all the possible options for you.

[Emma Power Mortgages]

Looking to remortgage based on my own contractor income, went to current one (Barclays) who only looked at my self assessment income which was low last year as I retain profits for warchest and split divvies. So they couldn't loan me what I need.

Is there a bank/company that will lend based on your actual earnings? Only snag is my contract is due to end on a few weeks but 99% sure I will get renewed. Looking fpr 85% LTV and a low rate. Also would prefer it to be a second mortgage as I have a high early repayment charge on the original one

P.S. NLUK please don't ask me to search

There are several lenders that will lend based on your annualised contract rate. Call a specialist, every contractors situation is slightly unique to anothers. It shouldn't cost you anything more than 15 minutes of your time for an initial consultation to see if they can work with your specific set of circumstances. They should cover all bases and provide you with your options.

I am slightly confused by your second mortgage comment, do you own 2 properties?

You can't have 2 separate mortgage companies on the same property. You would need to look into a secured loan if this is what you are referring to. Most lenders insist on the first charge.

Hope this helps

[Unix]

There are several lenders that will lend based on your annualised contract rate. Call a specialist, every contractors situation is slightly unique to anothers. It shouldn't cost you anything more than 15 minutes of your time for an initial consultation to see if they can work with your specific set of circumstances. They should cover all bases and provide you with your options.

I am slightly confused by your second mortgage comment, do you own 2 properties?

You can't have 2 separate mortgage companies on the same property. You would need to look into a secured loan if this is what you are referring to. Most lenders insist on the first charge.

Hope this helps

Thanks Emma,

OK I will just look for a remortgage then and pay the ER fee. I am speaking with freelancer financials at the moment, only issue is they want to charge a fee for the application, but they also get a fee from the lender.

[Emma Power Mortgages]

Are there many lenders who would disregard the remaining length of the contract?

I tend to work on shorter contracts, 2-3 months in length, and it is very hard to time the mortgage as most will likely need an active contract when arranging mortgage offer and then at completion. I may have 1-2 weeks breaks between the contracts.

Gaps are something specific to the lender, some will allow more than others.

You usually require 1 month left at application and they reserve the right to check at completion. This is a very general rule and can occasionally be made an exception of if you meet other lender criteria.

[Emma Power Mortgages]

Thanks Emma,

OK I will just look for a remortgage then and pay the ER fee. I am speaking with freelancer financials at the moment, only issue is they want to charge a fee for the application, but they also get a fee from the lender.

Most do I'm afraid, you are a bit more complicated than your average case. Find someone you are comfortable with is my best advice