Getting a mortgage - FTB

[NorthWestPerm2Contr]

Speak to contractor money.

Have you had experience with them?

[sal626]

You want to avoid speaking to the call centre bods.

In my experience, it helps going through a broker or companies (many advertising on this site) that understand how contractors/ltd co. work and have access to decision makers/underwriters more senior then the bod reading off a script.

[northernladuk]

Really? In this current market? Once you have already bought I am assuming it is a lot easier. When I spoke to my bank they were worse than useless, made me almost lose hope of buying. They said they would only go off income - anybody had direct experience with any branches in the south manchester area who are not stupid idiots?

The word income is confusing though. Some people regard income as PAYE/Wage, others regarding it as 'incoming money' from divi's/wages etc. You want to get this clarrified. Your income is your divi/wage and they need to know and accept that which I am sure they will when your accountant confirms it.

[NorthWestPerm2Contr]

The word income is confusing though. Some people regard income as PAYE/Wage, others regarding it as 'incoming money' from divi's/wages etc. You want to get this clarrified. Your income is your divi/wage and they need to know and accept that which I am sure they will when your accountant confirms it.

The problem here is that we tend to pay ourselves below the higher tax bracket (<43k) which is not an accurate reflection on our actual daily rate and will limit our mortgage options.

[Old Greg]

Have you had experience with them?

Yes. Efficient and will get mainstream mortgages without accounts.

[PAH]

The problem here is that we tend to pay ourselves below the higher tax bracket (<43k) which is not an accurate reflection on our actual daily rate and will limit our mortgage options.

In that case find a specialist broker who will go off the current contracted rate as proof of income.

Also has the benefit of being pre-tax and expenses so is higher than the equivalent salaried income.

[MrRobin]

The problem here is that we tend to pay ourselves below the higher tax bracket (<43k) which is not an accurate reflection on our actual daily rate and will limit our mortgage options.

Yes but if you're refusing to go into the higher tax bracket then your daily rate has no bearing on your personal income and ability to pay a mortgage!

[Old Greg]

Yes but if you're refusing to go into the higher tax bracket then your daily rate has no bearing on your personal income and ability to pay a mortgage!

Yes it does. He has cash reserves in the company account. If he can't pay his mortgage otherwise, it's reasonable to assume that he'll declare a dividend.

[MarillionFan]

Cheers for your advice. I am staying put in a cheap rental place until I can afford a house of a certain size for family reasons. 250k is a lot but not if your looking in high demand areas with the best schools (think Sale/Alty etc). Unfortunately I am no longer at the stage of being able to buy a small house only to look for a larger house a few years later, the recession came at such a time for me that made it impossible to buy anything for the last few years anyway....

My first few houses were all buy to let.

Why? Because I could borrow on the basis of the rental yield on the property and not on my personal income. In addition, it kept my 'first time buyer' status intact.

As I was contracting I then charged my Ltd company before moving elsewhere for another contract. I bought 3 small, cheap properties like this. Not until later did I sell them and buy myself a bigger house.

[THEPUMA]

In that case find a specialist broker who will go off the current contracted rate as proof of income.

Also has the benefit of being pre-tax and expenses so is higher than the equivalent salaried income.

Try Paul Gash at PDMG Financial Services. 01923 809436. paul@pdmgfs.com. He is excellent.