Halifax Agreement in principle - how to get offer based on daily rate? (working link)

[Paracelsus]

Indeed!

This may be helpful for anyone seeing this thread and having the same issue in future - https://www.halifax-intermediaries.co.uk/criteria.html
Go to the 'contractors' section, find this wording re: IT contractors;

Treat as Employed if:

• Tax is paid by the company they work for (or they are employed via an umbrella company who deduct tax) OR
• Contractors who earn more than £500 per day or £75k per annum, OR are an IT contractor on any income, can be treated as employed irrespective if the customer pays their own tax, or classes themselves as self-employed. (The only exception to this is where a customer has more than one contract or they have set up a limited company and employs other contractors, in which case they should be treated as self-employed).

And

• Income to be used is the lower of the gross value of the contract or income calculated from payslip(s)/bank statement.
• Gross value of contract is calculated as daily rate on the contract x 5 days per week x 46 weeks per year (or hourly rate x 7 hours per day x 5 days per week x 46 weeks per year). Unless the contract states the actual hours/days worked are lower in which case use these figures.

[northernladuk]

Indeed!

This may be helpful for anyone seeing this thread and having the same issue in future - https://www.halifax-intermediaries.co.uk/criteria.html
Go to the 'contractors' section, find this wording re: IT contractors;

Treat as Employed if:

• Tax is paid by the company they work for (or they are employed via an umbrella company who deduct tax) OR
• Contractors who earn more than £500 per day or £75k per annum, OR are an IT contractor on any income, can be treated as employed irrespective if the customer pays their own tax, or classes themselves as self-employed. (The only exception to this is where a customer has more than one contract or they have set up a limited company and employs other contractors, in which case they should be treated as self-employed).

And

• Income to be used is the lower of the gross value of the contract or income calculated from payslip(s)/bank statement.
• Gross value of contract is calculated as daily rate on the contract x 5 days per week x 46 weeks per year (or hourly rate x 7 hours per day x 5 days per week x 46 weeks per year). Unless the contract states the actual hours/days worked are lower in which case use these figures.

Good find that. What I can't see though is what their limitations are. Cant remember which banks stipulated what but some wouldnt entertain you if there were less than 6 months left on the contract and another didn't allow any breaks in the previous two years or something. Wonder what Halifax's is.

[TheMortgageSquad]

Good find that. What I can't see though is what their limitations are. Cant remember which banks stipulated what but some wouldnt entertain you if there were less than 6 months left on the contract and another didn't allow any breaks in the previous two years or something. Wonder what Halifax's is.

Typically Halifax wouldn't want to see any gaps of longer than circa 6 weeks between contracts in the last 12 months. However, Halifax are quite hit and miss, dependent upon the Underwriter who deals with the application. I have seen applications go through with gaps of more than 6 weeks in the last 12 months. As they only ask for a copy of the current contract and last 3 months bank statements (business bank statements if outside IR35 or personal bank statements and payslips if inside IR35), if a contractor had a gap of longer than 6 week over 3 months ago, they wouldn't actually know with the documents provided anyway.

Other lenders (Clydesdale, Nationwide, Natwest, Barclays etc), typically require the last 12 months of contracts so of course if there was a gap of longer than 6-8 weeks which is generally the maximum gap most contractor friendly lenders will allow, they would obviously see this through the lack of contracts covering that period.