nationwide want a reference

[IR35 Avoider]

I've never had any problem getting a mainstream mortgage. Generally the lenders treat you as self-employed with the income of yourself and your company being synonymous for their purposes. The most common requirement from lenders was simply a letter from you accountant confirming the company income (= your income as far as they're concerned) is what you said it is.

If the standard forms they send you don't allow you to describe your income/situation completely, just phone them and explain and they will tell you what they need.

[EternalOptimist]

Whats a mortgage ?


suckers

[Bagpuss]

What the feck is an independant employer?! An employer is an employer.

It might not work for you bag-o-pus, having the charm of a freshly laid dog turd, but anyone with an ounce of business skills can do it.

You don't go in and say "of course my employer XYZ ltd is just a tax vehicle for me to be a disguised employee of ABC ltd".

You say "My current job is senior programmer / BA / software architect / whatever permie title. Currently I am employed by XYZ ltd in Town Y and my income is £123456"

Here is the complex process.

You go in. you talk to the adviser. You fill in the forms. You put down XYZ ltd as your employer. They ask for a reference (usually a letter from the company to confirm you work there, often they don't even bother). Your accountant / co sec sends one on headed official company paper. It says "Dear Bank, This is to confirm Mr Thicky is an employee. Thanks."

Bingo! it is done. NO different to if you work for IBM, Microsoft or even MacDonalds.

Deary me. Getting a mortgage has got to be the easiest thing in the world these days. He who dares Rodney!

Are you hard of thinking? some of the old building societies do not recognise single man entity Ltds without 3 years of accounts. The only way around that is to get an 'employer' ref. They will not accept a ref from yourself or someone losely connected you feckwit. They want this to know regular income will be arriving into your account. How the feck can an accountant confirm that? Moreover the client won't want to provide refs. That leaves the agency.

Of course other lenders are not so strict and you can self cert.

But imagine this, you have a mortgage with a building society (50:50 equity), you go contracting and you split from your partner. You do not have 3 years of accounts and the building society will only accept a ref from your employer, not a letter from your mum/your accountant or your friend down the pub. There is a redemption penalty to redeem the mortgage. What would you do?


So if the orginal poster wants a mortgage with Nationwide and he has <3years accounts an agency ref may be the easiest way. For me it was either do that or pay the redemption fee (their rules, not mine).


Now get off your high horse and lose the (bad) attitude mate.

[milanbenes]

newby's don't seem to understand the nature of the general forum

Milan.

[expat]

from my agency before theyll give me a mortgage. Is being a contractor a problem for nationwide? My brother is a contractor and got his mortgage fine through halifax no references asked for. Or is it just me?

I was inclined to go through Nationwide since I bank there and they can see how much money goes in every month. My mortgage broker advised against since, as he put it, Nationwide is a lender that likes to see all the "i"s dotted and the "t"s crossed.

But any decent mortgage broker should be able to get you a good mortgage with no problem.

[Diestl]

If you go down the "I'm an employee..", what happens when they want to see payslips, and it shows you're earning less than a burger flipper trainee (due to most of it being paid in dividends)? Or can you insist on just using a reference?

[Bagpuss]

If you go down the "I'm an employee..", what happens when they want to see payslips, and it shows you're earning less than a burger flipper trainee (due to most of it being paid in dividends)? Or can you insist on just using a reference?

They are the ones who insist what you do.

They want to know you will have a regular income (hence the need for refs)
The building societies are risk adverse, but 3 yrs of accounts is usually OK for most.

If your circmstances fall outside of the box, then they are likely to decline, so
< 3yrs of accounts it's prob best to try a broker and self cert.

With the building societies <3yrs accounts and no ref from the 'employer' (where employer=client or agency) = they will knock you back.

PS. Avoid Britannia building society at all costs.

[bobhope]

just print some off with whatever you've put down as your salary