Contractor Mortgages

[watsen85]

We understand as contractors you work hard to earn your money and therefore we want to help you retain as much as possible. Historically lenders have penalised contractors when it comes to sourcing a mortgage. They see permies as a better bet.

Mod note.
Hi watsen85,

Please read the forum's T&C's. Blatant advertising is not allowed. If you want to participate on this forum you can promote your business with a login containing your company name (watsen@myco.com) and advising posters on their mortgages.

[kaiser78]

We understand as contractors you work hard to earn your money and therefore we want to help you retain as much as possible. Historically lenders have penalised contractors when it comes to sourcing a mortgage. They see permies as a better bet.Mod note.
Hi watsen85,

Please read the forum's T&C's. Blatant advertising is not allowed. If you want to participate on this forum you can promote your business with a login containing your company name (watsen@myco.com) and advising posters on their mortgages.

I have never experienced that, in fact have found it easier to get a mortgage as contractor, even as recently as last month.

[nomadd]

I have never experienced that, in fact have found it easier to get a mortgage as contractor, even as recently as last month.

Interesting.

OK, to turn this thread into something useful, rather than spam...

Has anyone here purchased a property via their Ltd? Pros/Cons? Reason I ask is that I work mainly in London, so might - one day, when prices fall to less insane levels - buy a property here purely for work commitments. I could also, I guess, rent the thing out in years to come to fund part of my retirement.

As I say, I wouldn't be doing this for a few years until prices drop back, but with a very decent warchest in the bank - and London rents at insane levels (I'm very lucky to be on a very cheap rent at the moment) - I just wondered if buying via the Ltd was a "go'er" of a plan B?

Comments please.

[kaiser78]

Interesting.

OK, to turn this thread into something useful, rather than spam...

Has anyone here purchased a property via their Ltd? Pros/Cons? Reason I ask is that I work mainly in London, so might - one day, when prices fall to less insane levels - buy a property here purely for work commitments. I could also, I guess, rent the thing out in years to come to fund part of my retirement.

As I say, I wouldn't be doing this for a few years until prices drop back, but with a very decent warchest in the bank - and London rents at insane levels (I'm very lucky to be on a very cheap rent at the moment) - I just wondered if buying via the Ltd was a "go'er" of a plan B?

Comments please.

useful ?? I read a post on this recently via search and the general view I recall was this wasn't a recommended approach. Cannot recall the reasons but have a look.

[malvolio]

useful ?? I read a post on this recently via search and the general view I recall was this wasn't a recommended approach. Cannot recall the reasons but have a look.

CGT is the main reason. You don't get primary residence relief on it and you pay it at a much higher rate. It can be done, obviously, but you need to be doing it as a business and ideally through a separate company to keep the taxation picture stimple.

[nomadd]

useful ??

Yeah, I replied to your quote, but my "useful" remark was not aimed at you. It was aimed at the OP (and the mods had already quite rightly stepped in there; I just didn't want to be seen as if I was prolonging the spam nature or the original post. )

[cojak]

We have accountants, I thought that a tame mortgage broker could be quite useful for answering questions.

But he probably posted spam and we won't be seeing him again.

[Fred Bloggs]

I think you'll have a very long wait for property prices to fall in London. I forget the statistics now, but I think it's like in some parts of London, the majority of buyers are from overseas. And they don't worry about a few grand on a price as the £ is dropping like a stone anyway. This underpins prices in the capital making them ever less affordable to the natives.

[administrator]

We have accountants, I thought that a tame mortgage broker could be quite useful for answering questions.

But he probably posted spam and we won't be seeing him again.

Yup, IP from India so have banned it

I think you'll have a very long wait for property prices to fall in London. I forget the statistics now, but I think it's like in some parts of London, the majority of buyers are from overseas. And they don't worry about a few grand on a price as the £ is dropping like a stone anyway. This underpins prices in the capital making them ever less affordable to the natives.

If prices start to drop though then even foreign buyers are likely to put off buying surely? If prices are falling then it doesn't matter what your home currency is worth, if the prices here fall you will have lost money.

[nomadd]

I think you'll have a very long wait for property prices to fall in London. I forget the statistics now, but I think it's like in some parts of London, the majority of buyers are from overseas. And they don't worry about a few grand on a price as the £ is dropping like a stone anyway. This underpins prices in the capital making them ever less affordable to the natives.

Very select, prime Central London postcodes only. I live in London and see property prices starting to fall back already. Most stuff around me is either stuck on the market or has had 5-10% chopped of since the Spring. This is N14/N21, so nice areas.

But the whole house price debate is for a separate forum. Let's not get into several hundred pages of it here...

EDIT: And I've lived here for 24 years, so am not a great believer in the "house prices in London will never fall", as I have seen them fall many times. And today's Halifax price index shows a 0.5% drop for September alone...