Mortgage with the Woolwich

[Support Monkey]

Thanks for the tip guys.

the general consensus seemed to be that it would be better to approach the lenders directly

WRONG!!!!!!! whoever you approach directly they are going to want to see proof of earnings and if your limited they are gonna want to see your books and if your umbrella you are an employee of the umbrella so they will want to see a track record of earnings which if you have only just started with them is going to be pretty difficult to prove however they may take into consideration previous employment pay.

as Freelancer financial says An experienced Contractor Mortgage Adviser will make use of contacts they have with senior underwriters to directly package the mortgage application

Your better of speaking to Contractor Money or some other IFA with specialised contractor experience rather than the spotty 20 something clerk behind the counter at your local Halifax on a Saturday morning

[Freelancer Financials]

Hi,
I have been speaking with the Woolwich about getting a mortgage. They seemed quite optimistic, even though I have only been contracting for a few weeks. They said that they treat IT contractors differently to other contractors and that because I have well over 10 years in the industry I would likely be OK.

However, I hit a bit of a brick wall with them tonight, when I pointed out that I would be structured under a Limited Company. They said that would mean that I would need a year's accounts (if I was a customer) and two years (if I wasn't).

I was originally surprised when they said that things should be OK, and then even more surprised when they said that I wouldn't.

The contract, which is for 12 months, is in my name, and I actually haven't set up the company yet and so obviously haven't billed the client yet.

I know that there is obviously a difference between me and the legal entity of a company, but for practical purposes, I believe that I could just get the client to pay me via PAYE (which I think they would be happy to do), or do the same via an umbrella company.

That, it would seem, would be enough to move me back into the Woolwich's good books. The "self-employed" aspect seems to be the problem, although it seems a little strange given that the contract would be exactly the same.

I will call them again tomorrow, and I will post back here, but I just wondered if anybody had any thoughts on this. Am I missing anything with the idea that I could just work on the contract under a different structure?

Many Thanks,
Marshall

Hi Marshall,

There are a number of contractor friendly mortgage lenders that support contractor base underwriting. Woolwich are one of those lenders but require a minimum contracting period of 12 months. As you have only been contracting for a short period of time, there is only one lender that will consider your application – Halifax.

Irrespective of whether you are self-employed through a Limited Company or utilising an Umbrella Company, you can secured a mortgage with Halifax that accept the gross value of your contract as evidence of income.

An experienced Contractor Mortgage Adviser will make use of contacts they have with senior underwriters to directly package the mortgage application so that the full earnings potential is taken into account. The mortgage loan can be as much as 4-5 times annualised contract rate.

Good Luck!

[THEPUMA]

Thanks for the tip guys.

I have read previous thread here that mention Contractor Money, but in those threads the general consensus seemed to be that it would be better to approach the lenders directly (Woolwich was given special mention as a lender who looked fairly favourably on contractors, which was why I approached them in the first place).

I will definitely speak with Contractor Money. I would ideally like to work under my own limited company, but I suppose that I must have the fallback of just working under PAYE, at least until I buy a house and then move under a limited company.

Thanks again.

I think the Halifax are the best for newbie contractors. The Woolwich normally ask for at least one set of accounts.

I know a mortgage guy who is sh1t hot for contractors. If you want his contact details please PM me.

Puma

[Marshall_Clegg]

Thanks for the tip guys.

I have read previous thread here that mention Contractor Money, but in those threads the general consensus seemed to be that it would be better to approach the lenders directly (Woolwich was given special mention as a lender who looked fairly favourably on contractors, which was why I approached them in the first place).

I will definitely speak with Contractor Money. I would ideally like to work under my own limited company, but I suppose that I must have the fallback of just working under PAYE, at least until I buy a house and then move under a limited company.

Thanks again.

[ee61re]

Another vote here for ContractorMoney - they arranged my current mortgage, also with the Woolwich.

[~Craig~]

I would contact someone like Contractor Money who can help you with your application with Woolwich and won't charge you a fee. I think a lot of it is how they present your figures and some have special arrangements to allow you to get a mortgage based on contract rate alone.

[Marshall_Clegg]

Hi,
I have been speaking with the Woolwich about getting a mortgage. They seemed quite optimistic, even though I have only been contracting for a few weeks. They said that they treat IT contractors differently to other contractors and that because I have well over 10 years in the industry I would likely be OK.

However, I hit a bit of a brick wall with them tonight, when I pointed out that I would be structured under a Limited Company. They said that would mean that I would need a year's accounts (if I was a customer) and two years (if I wasn't).

I was originally surprised when they said that things should be OK, and then even more surprised when they said that I wouldn't.

The contract, which is for 12 months, is in my name, and I actually haven't set up the company yet and so obviously haven't billed the client yet.

I know that there is obviously a difference between me and the legal entity of a company, but for practical purposes, I believe that I could just get the client to pay me via PAYE (which I think they would be happy to do), or do the same via an umbrella company.

That, it would seem, would be enough to move me back into the Woolwich's good books. The "self-employed" aspect seems to be the problem, although it seems a little strange given that the contract would be exactly the same.

I will call them again tomorrow, and I will post back here, but I just wondered if anybody had any thoughts on this. Am I missing anything with the idea that I could just work on the contract under a different structure?

Many Thanks,
Marshall