Halifax won't give mortgage due to IR35 and contract wording

[craig1]

I think Power Mortgages has hit the nail on the head there ! Just hit a fussy underwriter and exactly what I am thinking !
I will know on Monday if this gets approved !

btw . the mortgage application was 50% of what I was entitled to if the "day rate x 5 days a week x 48 weeks per annum" formula is used. I had all my accounts audited by Freelancerfinacials AND by Halifax, so this was no issue at all. The 2 main issues for Halifax was 3 monthly x rolling contract was not long enough and that nowhere in my written contract did it state 5 days a week. It only stated 8 hours a day !!

lets hope and pray !!

It might just be me living in my little world but I've never seen a contractor mortgage done on current day rate before.

[bodillc]

I went through 6-8 mortgage brokers and FreelancerFinancials were the sole and only one while I was searching, that did " based on your currently daily rate ". They are actually to be recommended . However, even though I've been contracting for over a decade and work in IT Corporate security ( firewalls, IDS systems, PKI, VPN's etc. etc in Canary Wharf areas ), FreelancerFinacials seem to have little control over their actual mortgage bank provider itself ! So, you still end up under the criteria of the rip-off banks !( oops, a spell slip there ).

[bodillc]

It might just be me living in my little world but I've never seen a contractor mortgage done on current day rate before.

Craig

see Contractor Mortgages - Award Winning UK Mortgage Experts

[northernladuk]

It might just be me living in my little world but I've never seen a contractor mortgage done on current day rate before.

I am sure they are mentioned on nearly every mortgage thread that starts on here. Also crop up in the news articles from time to time as well.

Oh yeah.. and if you click on the link on the right that says Contractor Mortgages it mentions them as well.....

[DigitalUser]

I am sure they are mentioned on nearly every mortgage thread that starts on here. Also crop up in the news articles from time to time as well.

Oh yeah.. and if you click on the link on the right that says Contractor Mortgages it mentions them as well.....

My mortgage was based on day rate.

[Power Mortgages Ltd]

A lot of the problems come from using seemingly interchangeable terminology. Although you technically can be, it is rare for someone to be self employed AND a company director within a single business. Banks, mortgage lenders and many other professionals including even, many accountants are often clueless when it comes to corporate structures and many cannot differentiate between employment, self employment, company directorships and pure share ownership.

It seems that there are as many financial 'professionals' would benefit from a lesson or two from the general forum here

I don't mean to get at you of course, I am sure your use of the term above was a mere aberration

It is the banks who are mainly at fault for this as whilst I appreciate being a Director of a Limited Company legally means you are employed, the way the lenders look at it is that if you own more than 25% of the company you work for they will assess you as someone who is self employed.

It might just be me living in my little world but I've never seen a contractor mortgage done on current day rate before.

There are a number of lenders who lend in this way and a few companies like those mentioned already (including us) who can assist in arranging mortgages this way. If you have Limited Company accounts though, and the income from those accounts is sufficient to support what you need to borrow then you do not really need to go down the route of using your contract to prove your income.

[bodillc]

In general, who do Power Mortgages find as the best mortgage provider / lender to good contractors that are Ltd., being in business for over a decade, and have a good background ? ( ie. clean credit score, low overheads, bookkeeper etc. etc. ).

Thanks

[captainham]

In general, who do Power Mortgages find as the best mortgage provider / lender to good contractors that are Ltd., being in business for over a decade, and have a good background ? ( ie. clean credit score, low overheads, bookkeeper etc. etc. ).

Thanks

You mean so you can go to them direct and miss out the middle man?!

[bodillc]

You mean so you can go to them direct and miss out the middle man?!

My application is already with FreelancerFinacials and Halifax are supposed to decide today or tomorrow ! I have no need to skip anybody out. I'm purely curious as to why Freelancer chose Halifax amongst others, such as VirginMoney etc. I am not privvy to which banks are more favourable and easier to manage when it comes to dealing with contractors.
I'm just curious as to who other brokers find easier to deal with.

[Power Mortgages Ltd]

In general, who do Power Mortgages find as the best mortgage provider / lender to good contractors that are Ltd., being in business for over a decade, and have a good background ? ( ie. clean credit score, low overheads, bookkeeper etc. etc. ).

Thanks

It will largely depend upon the loan to value and what deposit you are putting down because whilst lender A may be best with a 10% deposit, they may not be with a 15% deposit.