Mortgages for Contractors

[JoJoGabor]

Yeap I ralise that. In fact banks are curly runnng risk scenarios on interest rates being based at 15%. I dont know how likely they thin that is, but its possible!

[Ardesco]

You do realise that in a couple of years at most interest rates will have drastically increased and your mortgage will probably be three time more expensive than it is now.

Interest rates are at an all time low and will not get any lower, taking into account the amount of debt that this country is in, there is only one way they can go from here.......

Can you afford to triple the amount of money you are paying into your mortgage on your new role?

[JoJoGabor]

Yup because it's a great time to junk your permie role and get a short term contract just before getting yourself into the largest amount of debt you have ever had.....

Its a risk I know, but I've weighed up the pros and cons. I'm currently consulting, and getting the chop is never more than 3 weeks away - it all depends on how many chargeable days I rack up. The field I work in (virtualisation) is one field that is really taking off at the moment purely because it can save clients substnatial amounts of money which they are under pressure to do.

Got a good network of potential clients lined up. Even if I start off just getting 1 or 2 days per week, it will match my permie salary, and I'm hoping it will grow into something more like a small consultancy.

[TimberWolf]

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[FSM with Cheddar]

WTS

[Ardesco]

Thanks for the advice,

I just spoke to them, and yes as you said they can base a mortgage based on even a short term contract extrapolated out to a 48 week year. Great - that means I can leave my sucky permanent role!!! Woohoo!!

Yup because it's a great time to junk your permie role and get a short term contract just before getting yourself into the largest amount of debt you have ever had.....

[JoJoGabor]

Thanks for the advice,

I just spoke to them, and yes as you said they can base a mortgage based on even a short term contract extrapolated out to a 48 week year. Great - that means I can leave my sucky permanent role!!! Woohoo!!

[PM-Junkie]

WHS

Contractor money work on Daily rate, not 18 months of accounts. All they needed from me was a copy of my current contract.

Chap I worked with spoke highly of them too, if that's any help.

[FSM with Cheddar]

You could try these guys: http://www.contractormoney.com/ to see if they can help.

WHS

Contractor money work on Daily rate, not 18 months of accounts. All they needed from me was a copy of my current contract.

[Turion]

Simple. Rent until you've got a decent deposit and credit record.

[Rookie]

You could try these guys: http://www.contractormoney.com/ to see if they can help.

[swamp]

I've just got off the phone with my Accountants IFA, discussing mortgaes for contractors. She told me that currently mortgage providers want to see 2 years of UK accounts from contractors and require a minimum 25% deposit. This is a problem for me as I've been out of the country for a few years.

Anyone know any providers who can offer a contractor a mortgage with say 1 years accounts only and 15% deposit?

My girlfriend is a teacher so at least she has what they see as a stable income - does this even help?

Try a mortgage broker who can actually speak to the decision makers. Complete Mortgages in Guildford got me a mortgage with 18 months' books and 15% deposit, but that was late 2005. In the end the lender never even spoke to my accountant; just seeing all my old contracts plus the low lending sum was enough for them to approve my application immediately.

However most 'normal' mortgages require at least 25% deposit these days (as opposed to -10% in 2005!), so I don't see how you're going to get round this.

[GardenGirl]

Have you tried your own bank?, you might not get the best rates but usually your own bank will be able to see your current account and will lend on that basis (not accounts) failing that your Business Account Manager should be able to help you. Once you have a mortgage its easier (although not so much at the moment) to switch to someone.

[JoJoGabor]

I've just got off the phone with my Accountants IFA, discussing mortgaes for contractors. She told me that currently mortgage providers want to see 2 years of UK accounts from contractors and require a minimum 25% deposit. This is a problem for me as I've been out of the country for a few years.

Anyone know any providers who can offer a contractor a mortgage with say 1 years accounts only and 15% deposit?

My girlfriend is a teacher so at least she has what they see as a stable income - does this even help?