Contractor Mortgages - Do you have inside information

[tigerinopen]

Ok, we know contractor can avail mortgages as UK limited or umberalla. This is I guess they usually ask for:

a) Latest Accurate CV
b) Current Contract with months to go.
c) Good daily Rate
d) If you have years of accounts - that helps but as is in my case, it is not absolute must if you dont - this is what I am told.

But does it matter if you pay tax in UK or in another country in Europe?

I have been asking related questions but be able to get the mortgage is the deciding factor for me whether I want to go via Dutch payroll or UK limited in Netherland. Initially I was advised that I have to paying UK taxes (so go UK limited) but I spoke to another advisor and he said it does not matter if you pay taxes in Netherlands.

Any one with experience or inside knowledge?

[Mark McBurney@CMME]

Ok, we know contractor can avail mortgages as UK limited or umberalla. This is I guess they usually ask for:

a) Latest Accurate CV
b) Current Contract with months to go.
c) Good daily Rate
d) If you have years of accounts - that helps but as is in my case, it is not absolute must if you dont - this is what I am told.

But does it matter if you pay tax in UK or in another country in Europe?

I have been asking related questions but be able to get the mortgage is the deciding factor for me whether I want to go via Dutch payroll or UK limited in Netherland. Initially I was advised that I have to paying UK taxes (so go UK limited) but I spoke to another advisor and he said it does not matter if you pay taxes in Netherlands.

Any one with experience or inside knowledge?

Hi,

I am a senior consultant at Contractor Mortgages Made Easy, and the true answer is that it varies from lender to lender, however not paying UK income tax is not in itself a reason why you will not be able to obtain a mortgage.


Kind regards,

Mark McBurney

[Power Mortgages Ltd]

Ok, we know contractor can avail mortgages as UK limited or umberalla. This is I guess they usually ask for:

a) Latest Accurate CV
b) Current Contract with months to go.
c) Good daily Rate
d) If you have years of accounts - that helps but as is in my case, it is not absolute must if you dont - this is what I am told.

But does it matter if you pay tax in UK or in another country in Europe?

I have been asking related questions but be able to get the mortgage is the deciding factor for me whether I want to go via Dutch payroll or UK limited in Netherland. Initially I was advised that I have to paying UK taxes (so go UK limited) but I spoke to another advisor and he said it does not matter if you pay taxes in Netherlands.

Any one with experience or inside knowledge?

Hi Tigerinopen,

It will depend on a number of factors.

Is the property to be used for your own dwelling or will you be renting the property out?
Is the company you are/will be working for in the Netherlands a multinational company?
Do you reside in the Netherlands or intend to reside in the Netherlands if you are/will be working there?
Do you have an address history already in the UK?

The latter point will matter quite a bit because if you do not have an address history in the UK over the last 3 years you will likely struggle on the credit scoring side of things with lenders.

A number of lenders in order to lend to you will insist you have to work for a multinational company and will need to see a copy of your contract.

Abbey (Santander) tend to be the most flexible lender for people working abroad. They would insist that your family need to be living in the property and will deduct 25% off your income to account for tax and currency fluctuations.

Going down the route of UK Ltd Co then Halifax should be able to assist so long as the income is paid into a UK bank account. They can then just use your contract as proof of income with your day rate annualized as the definition of your income.

Hope that helps?

Ben