Originally posted by northernladuk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: First time buyer - mortgage / ER
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "First time buyer - mortgage / ER"
Collapse
-
My personal opinion, your option 1 would make more sense to me...though interest rate will likely be staged. Ie 73% LTV will almost certainly be same rate as 75%, may well be same rate as 80% too. So I'd let that dictate how big a deposit you put in vs hold back.
Your accountant should be able to guide re the company/personal tax side of things. A mortgage adviser will be better placed if you wanted specifics about interest rates/deposit etc.
Leave a comment:
-
I spoke to freelance financials and they were very helpful. I am totally considering going with them for the mortgage.
Though they are are not able to advise on my ltd company finance / tax sides of things. Is there any recommendations on whom I can speak to evaluate my situation holistically and weigh out different options to help me determine whether I should consider ER route.
Thanks again everyone, I really appreciate all the inputs. this is by far the most helpful forum I have seen on contractors business.. I am annoyed at myself for not using it sooner..
Leave a comment:
-
Originally posted by MrButton View PostIt depends how much you want that property you have offered on and how likely it is to find a similar property (and mortgage) a few months down the line.
However with going on maternity leave and closing your company make sure you have a good conversation with a good mortgage advisor (not your accountant) about your whole circumstances.
Edit: I wholly recommend George Yerou at Freelancer Financials
Leave a comment:
-
Originally posted by northernladuk View PostIf you use the ER cash where is your warchest for if plans change?
If you shut your company down and go brolly you are going to lose an efficiency you were hoping to gain through ER. Strikes me as being a bit short sighted to shut the company and then pay higher tax via a brolly for the next 2 years or so.
Thanks for your response. I will speak to freelance financiers and get their advise.
Leave a comment:
-
Originally posted by northernladuk View PostYou sure that's not John Yerou?
Although John Yerou’s middle name is George.
Maybe changed recently from Upton.
Leave a comment:
-
Originally posted by MrButton View PostIt depends how much you want that property you have offered on and how likely it is to find a similar property (and mortgage) a few months down the line.
However with going on maternity leave and closing your company make sure you have a good conversation with a good mortgage advisor (not your accountant) about your whole circumstances.
Edit: I wholly recommend George Yerou at Freelancer FinancialsLast edited by northernladuk; 19 May 2019, 12:22.
Leave a comment:
-
If you use the ER cash where is your warchest for if plans change?
If you shut your company down and go brolly you are going to lose an efficiency you were hoping to gain through ER. Strikes me as being a bit short sighted to shut the company and then pay higher tax via a brolly for the next 2 years or so.
Leave a comment:
-
Option 3 - both option 1 and 2.
Pursue them both and see what happens first.
You might not be in a position to pay until after the ER is finished.
Neither process is instantaenous, and you have some control over the timing of the house purchase anyway.
Your mortgage adviser will tell you this though.
Leave a comment:
-
First time buyer - mortgage / ER
It depends how much you want that property you have offered on and how likely it is to find a similar property (and mortgage) a few months down the line.
However with going on maternity leave and closing your company make sure you have a good conversation with a good mortgage advisor (not your accountant) about your whole circumstances.
Edit: I wholly recommend George Yerou at Freelancer FinancialsLast edited by MrButton; 19 May 2019, 07:16.
Leave a comment:
-
First time buyer - mortgage / ER
Hello,
I have been contracting for about 5 years, I am now planning to buy my first house.
I am using my personal savings to pay 20% deposit. however I am considering closing down my ltd company as I am going on Maternity leave soon. I am planning to take about 8-9 months maternity break and then look for another contract role via umbrella company for sometime or move to permanent role, depending on how situation is post my break.
I have spoken to my accountant and he thinks that considering I am going to take a break, closing down the company and claiming ER is better option.
I am planning on putting about 50% of the cash which I will get from LTD company to pay off my mortgage.
I have offer accepted on one property just few days back.
ER process takes about 2 months, and I might not have cash by the time I progress on buying this property.
I am considering to make 10% over payment on the mortgage once the ER process is complete and I have got cash in my personal account from company bank account.
My question is - Option 1. Is it better to wait for the ER process to complete before buying the property and use the cash against deposit (bring down LTV to about 73%, there by getting little better interest rate during first 2 year fixed period)
or Option 2 :- continue with the buying process, once ER process is complete, use the fund to make 10% early payments.. there by reducing monthly repayments (I won't be able to reduce the term during initial fixed period )
Can you please advise would option 1 be better or option 2?
ThanksTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: