Mortgages

[el_richo]

Hello everyone,

Just another quick question.

I'm looking to jump into the so called housing ladder quite soon yet i'm wondering if being a contractor working under an umbrella will have an adverse affect compared to if i were full time perm.

Anybody had any recent experience with this? What do they lenders look for?

Thanks again for any info
Rich

[gingerjedi]

It depends on how up to speed the bank is with current working practices, in Nationwide’s eyes freelancing was an alien concept and it took a few letters of explanation before they agreed.

Also P60's are not a true reflection of what you actually take home, I just made out I was an employee of the umbrella before I went Ltd, you could arrange to see their adviser who should know the best way forward.

Other than that your best bet is a 'self cert' mortgage if you have a big enough deposit.

[Numptycorner]

Good advice, many of the smaller lenders are risk adverse, they will not think outside the check-box, they want paid employment or 3 years + of accounts. If the deal is so good then best bet is to tell them you are working for an agency or failing that self cert with a broker. Never tell a small lender you have just started up as a freelancer, they will never lend you anything.

[el_richo]

Well the problem is that we'd be looking at a high % mortgage. The stamp duty alone is a killer so it'll be around 100%

I've been contracting under an umbrella for just over 1.5 years now though (will be changing to LTD as soon as the mortgage is in place hopefully).

Surely they'll not need to see my accounts for last 1.5 years?

[Kyajae]

Well the problem is that we'd be looking at a high % mortgage. The stamp duty alone is a killer so it'll be around 100%

I've been contracting under an umbrella for just over 1.5 years now though (will be changing to LTD as soon as the mortgage is in place hopefully).

Surely they'll not need to see my accounts for last 1.5 years?

Try a google search for 'uk self-certified mortgages' - these schemes are designed for self employed people.

[Ruprect]

Try contractormoney.com - they sorted mine out - they have deals with high st lenders so you can get pretty good deals too.

[Ruprect]

Another mortgage question

One more than one occasion I've heard people say you shouldn't pay off your whole mortgage, you should keep a smallish amount borrowed.... but I've not heard a good reason why.... anyone got any idea?

[Bluebird]

you used to get some sort of tax relief but I don't think it applies now...

[lamboman]

Try Parasol Financials - they can get the best deals possible for contractors...

[Moscow Mule]

One more than one occasion I've heard people say you shouldn't pay off your whole mortgage, you should keep a smallish amount borrowed.... but I've not heard a good reason why.... anyone got any idea?

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