Mortgage while in between contracts

[SandyD]

Hi, want to remortgage my residential property, am a contractor through my own Ltd, wonder if anyone knows the latest re remortgaging while in between contracts? Last time I applied for a mortgage they wanted proof of the contract as well as ltd company and personal income proof.

[Support Monkey]

I have just remortgaged and they wanted every last bit of paperwork and proof however if you have previous good contract history you should be ok (assuming your not talking about 12 months off) they are a bit tight on it now compared to a few years back but if you go to a contractor specialist you should be ok as long as you can explain the gap

[SandyD]

I have just remortgaged and they wanted every last bit of paperwork and proof however if you have previous good contract history you should be ok (assuming your not talking about 12 months off) they are a bit tight on it now compared to a few years back but if you go to a contractor specialist you should be ok as long as you can explain the gap

Thanks, I am not taking a gap, my contract just finished and looking for a new role, but as I am on the bench thought I can use the time to do the remortgage now, hoping to go back to a role soon, when on a role things are usually too hectic, just wanted to use this downtime to do something useful.
Which contractor specialist did do you know?? ContractorMortgages? I think they charge a lot nowadays.

[northernladuk]

There are quite a few threads about just this situation, or people having long breaks. From memory (but you can do a search you know) none of them had any good news.

The answer is find a contractor mortgage provider, get them to do the legwork and come back to you with the criteria each lender has and try and work it. Halifax needs you to be less than half way in to your contract which is no good for you. Nor is Virgin who don't want breaks in contracts and so on (don't quote me on those sorry). You aren't going to get a quick answer here I am afraid.

I'd recommend asking for John Yerou at Freelancer Financials if you do want a recommendation.

[Support Monkey]

Thanks, I am not taking a gap, my contract just finished and looking for a new role, but as I am on the bench thought I can use the time to do the remortgage now, hoping to go back to a role soon, when on a role things are usually too hectic, just wanted to use this downtime to do something useful.
Which contractor specialist did do you know?? ContractorMortgages? I think they charge a lot nowadays.

I would wait until your back in contract, your going to be jumping through hoops trying to get one with no current contract.

[SandyD]

Thanks very much NorthernLad and Support Monkey.

[Jess@ContractorFinancials]

Mortgage between contracts

Hi SandyD,

Remortgaging between contracts may not necessarily be a problem, however it will depend how long it takes you to get back into a new contract. Generally speaking, a gap of more than 6 weeks may cause some issues, however each lender has different policies around this.

If you have been trading for a significant length of time through your Limited Company, you may be able to use your accounts as your income proof instead of your contract daily rate. Although, the lender, or a mortgage broker should you use one, will need to ensure that the amount you are looking to borrow is affordable based on your accounts, and if you think it may take a while to get back into another contract, this may be the best route for you to go down.

Not all lenders these days will require your contract as well as your accounts as income proof - so it may be beneficial to explore all avenues, as some lenders will only require one or the other.

[SandyD]

Hi SandyD,

Remortgaging between contracts may not necessarily be a problem, however it will depend how long it takes you to get back into a new contract. Generally speaking, a gap of more than 6 weeks may cause some issues, however each lender has different policies around this.

If you have been trading for a significant length of time through your Limited Company, you may be able to use your accounts as your income proof instead of your contract daily rate. Although, the lender, or a mortgage broker should you use one, will need to ensure that the amount you are looking to borrow is affordable based on your accounts, and if you think it may take a while to get back into another contract, this may be the best route for you to go down.

Not all lenders these days will require your contract as well as your accounts as income proof - so it may be beneficial to explore all avenues, as some lenders will only require one or the other.

Thanks Jess, will make some inquiries, PM me your details please.

[Emma Power Mortgages]

Hi, want to remortgage my residential property, am a contractor through my own Ltd, wonder if anyone knows the latest re remortgaging while in between contracts? Last time I applied for a mortgage they wanted proof of the contract as well as ltd company and personal income proof.

This can be done if in some cases - like Jess has said your accounts can be used if there is enough income being drawn or you meet certain criteria. Speak to a specialist mortgage advisor they will be able to guide you to the correct lender.

[Lance]

Hi, want to remortgage my residential property, am a contractor through my own Ltd, wonder if anyone knows the latest re remortgaging while in between contracts? Last time I applied for a mortgage they wanted proof of the contract as well as ltd company and personal income proof.

Best bet is use your current mortgage provider. They already have knowledge of you and your payments. If you are going to borrow less then it's straightforward. If you want to borrow more then you'll have to prove more.