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  1. #1

    Nervous Newbie


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    Default Permie / Contractor Mortgage Joint Application

    After a bit of advice, I have been contracting now for just over a year and I am looking to move house. My partner is a permie with a substantial income, however not enough to go it alone on the mortgage. We currently have a staff mortgage through the halifax. I am wondering what the best options are here? Would it be best to go via a broker (even if i am not the main applicant) or does anyone know if Halifax would consider my income as a joint on the staff mortgage??

    any help would be appreciated!

  2. #2

    Fingers like lightning


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    Quote Originally Posted by Christoph View Post
    After a bit of advice, I have been contracting now for just over a year and I am looking to move house. My partner is a permie with a substantial income, however not enough to go it alone on the mortgage. We currently have a staff mortgage through the halifax. I am wondering what the best options are here? Would it be best to go via a broker (even if i am not the main applicant) or does anyone know if Halifax would consider my income as a joint on the staff mortgage??

    any help would be appreciated!
    Halifax are usually an awesome option for Contractors, provided you meet their pretty slack criteria:

    Applications will be considered from Fixed Term/Short Term Contractors if:

    1) the customer has a current continuous employment of 12 months more with 6 months of the contract remaining
    ~ or ~
    2) the customer has 2 years continuous service in the same type of employment.

    (That doesn't have to be 2 years in the same contract, or even 2 years as a contractor. The past two years could be 1 year of permie, 6 months in one contract, 6 months in another. Breaks between contracts need to be very minimal).

    If you meet that, then the Halifax will calculate your income as your day rate * 240 (I think) for affordability purposes.


    Whilst Halifax mortgages aren't necessarily the best, you'll find the ability to apply directly rather than incurring the cost of an independent broker will outweigh the extra cost. And are you not getting a discounted rate with a staff mortgage?

    Natwest are also pretty cool for contractors:
    For contractors who earn more than £75,000 a year, we will now calculate their income as their average weekly contract income multiplied by 46, provided that they have received or will receive sufficient income from one or more contracts over a 12 month period that incorporates the date of application, have received at least 6 months’ historic income from one or more contracts immediately preceding the date of application and have had no more than a 6 week break between contracts in the 12-month period. We will also request copies of their latest 3 months’ consecutive personal bank statements.
    There are others out there though, and for established contractors then there is the fall back "3 years limited company accounts" options with many lenders. If you are outside of the criteria, then a broker is probably best.

  3. #3

    Contractor Among Contractors

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    Default

    I personally would go for a broker purely because, with all the various hoops you have to jump through these days, they are best placed to make sure the right documentation is provided in the right format at the right time.

    There's no harm in going it alone but sometimes that extra advice smooths things along a bit.

    When I was selling in 2014, the chap buying worked nights and wouldn't answer enquiries until his rest day and then would run out of time to collate everything being asked of him. If he'd had a broker, I'm pretty sure the sale wouldn't have taken 6 months. (EDIT: this was a first time buyer and I was moving into rented, so should have been the simplest and quickest type of sale)
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    Should post faster

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    I used one of the free contractor mortgage brokers. If for nothing else other than the fact they did all the paperwork. Ended up with Halifax with a decent rate.

  5. #5

    I live on CUK

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    Quote Originally Posted by ladymuck View Post

    When I was selling in 2014, the chap buying worked nights and wouldn't answer enquiries until his rest day and then would run out of time to collate everything being asked of him. If he'd had a broker, I'm pretty sure the sale wouldn't have taken 6 months. (EDIT: this was a first time buyer and I was moving into rented, so should have been the simplest and quickest type of sale)
    What a w*nker!
    "You’re just a bad memory who doesn’t know when to go away" JR

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    My post count is Majestic

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    Quote Originally Posted by l35kee View Post
    I used one of the free contractor mortgage brokers. If for nothing else other than the fact they did all the paperwork. Ended up with Halifax with a decent rate.
    This. Freelancer Financials did mine and they've just mailed me this week as my discount period ends in a few months and they can get me a better rate. Saved me just under a 100 quid a month without lifting a finger. Very impressed.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    Contractor Among Contractors

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    Quote Originally Posted by SueEllen View Post
    What a w*nker!
    Naive, I think, more than actively w*nkerish
    I reject your reality and substitute my own - Adam Savage
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