Contractor mortgage advice

[Martin@AS Financial]

I was turned down by a "traditional" mortgage advisor when they looked over my paperwork because I only started being self-employed April 2017 (switched from a sole trader to a Ltd company Jan 2018). My main client is also from the US and so I earn "foreign income" which apparently is another red flag.

I found out about contractor mortgages online and reached out to Capricorn Financial for advice. Does anyone have any experience with them?

All they said I need to do is provide proof of a contract that encompasses a 12-month period with a minimum of 6 months already completed and at least 3 months left to run.

I meet this criteria! But is it really that easy? Has anybody been in the same situation?

Hi Blackjoe24

As a contractor, you are in a fortunate position in that your income can be assessed in one of two ways. The traditional method is to work off your ltd co salary and dividend / salary and net profit. This will be evidenced by your ltd co accounts, SA302's and tax overviews.

The alternative is that there are a number of lenders out there that understand how you get paid and will use the gross value of your contracted daily rate.

[kevpuk]

My advice, having tried the big 'Contractor' type brokers, is go to Halifax.

Go online, book an appointment in one in a fairly metropolitan centre (not a village/backwater branch), go in with your contract schedule with your day rate and they should sort you right out. Couldn't be beaten by a broker once fees etc had been taken into account.

Speak to John Yerou or one of his people at Freelancer Financials

Had a number of mortgages arranged by them including one from the Halifax beating most 'normal' rates. They know contractors inside out so will understand your position.

Both or either of the above ^^

I used a broker in 2014, having only been contractor for a year or so, and they helped arrange smooth mortgage with Halifax. Recently was thinking of additional borrowing on mortgage, and spoke direct to Halifax and was able to have very good clarity on how underwriting would be applied; in a nutshell, they were fully savvy on 'IT Contractor' rules and so on, so there would be no need for me to go via broker if wanting to proceed.

YMMV, but does suggest that speaking to the right person about the right thing can have the right outcome

[northernladuk]

Speak to John Yerou or one of his people at Freelancer Financials

Had a number of mortgages arranged by them including one from the Halifax beating most 'normal' rates. They know contractors inside out so will understand your position.

[PerfectStorm]

My advice, having tried the big 'Contractor' type brokers, is go to Halifax.

Go online, book an appointment in one in a fairly metropolitan centre (not a village/backwater branch), go in with your contract schedule with your day rate and they should sort you right out. Couldn't be beaten by a broker once fees etc had been taken into account.

[Lance]

YBS just approved me for a very good offset mortgage deal without a huge amount of checks. They didn't check contracts or clients. They just asked for the name address of my accountant.

[Spikeh]

I use a local broker - but I've always had great credit and my SA302's have been enough to satisfy most lenders.

[ladymuck]

It can be that easy - there are brokers out there who work with clued up lenders to get mortgages arranged. Some lenders (like Halifax and Nationwide I think) are sensible enough that they don't need contracting explained to them by a broker and you could go direct. I've not had any experience of that particular broker but I have in the past been easily able to get a mortgage despite being a filthy tax dodger

[blackjoe24]

I was turned down by a "traditional" mortgage advisor when they looked over my paperwork because I only started being self-employed April 2017 (switched from a sole trader to a Ltd company Jan 2018). My main client is also from the US and so I earn "foreign income" which apparently is another red flag.

I found out about contractor mortgages online and reached out for advice. Does anyone have any experience with them?

All they said I need to do is provide proof of a contract that encompasses a 12-month period with a minimum of 6 months already completed and at least 3 months left to run.

I meet this criteria! But is it really that easy? Has anybody been in the same situation?

Have also seen this page on CUK : https://www.contractoruk.com/money/c...mortgages.html