Reply to: please recommend where to get contractor mortgage

[Scrag Meister]

With 7 years accounts most high street lenders should be approachable.

After 2 years I got 2 mortgages, Santander and C&G. 0.49% above base and 2% above base.

[vetran]

here you go :

Former prostitute Rebecca Dakin says Valentine's is her busiest day as she reveals the secrets of men who pay for sex | Mail Online

'The guy in the bank gave me a mortgage straight away when he heard I was an escort,' she says. 'He told me they never had any problem with girls in my profession.'

[css_jay99]

They just want the final accounts you submitted don't they? To show officially what you earned as you can't give them a P60. Should have that surely?

You have to sign it off as a director whether an accountant prepares them or not.

Yes I have signed my full accounts, but apparently my Mortgage brokers says they also want the accounts signed by an accountant as well.

[northernladuk]

Mortgage company is requesting signed accounts from accountants but I prepare my accounts myself .

css_jay99

They just want the final accounts you submitted don't they? To show officially what you earned as you can't give them a P60. Should have that surely?

You have to sign it off as a director whether an accountant prepares them or not.

[northernladuk]

I think the £4k will be BIK and added to your total income for the year.
Additionally you will have to pay HMRC a surcharge of £25k (i.e. 20% of the loan) which they will refund only when you pay back the loan to ltdco .......

And the 4% will be deemed profit so will get taxed when you eventually get it out of company as well.

[css_jay99]

Mortgage company is requesting signed accounts from accountants but I prepare my accounts myself .

css_jay99

[css_jay99]

Maybe I don't understand this process then - need 200k mortgage.. So

100k loan from bank @ 4% costs 4k
100k loan from ltdco @ 4% cost 4k - business accounts pay minimal interest.

Compared with 200k loan from bank costing 8k so technically you are still paying 8k interest but half of which is back to you ltd co.

I think the £4k will be BIK and added to your total income for the year.
Additionally you will have to pay HMRC a surcharge of £25k (i.e. 20% of the loan) which they will refund only when you pay back the loan to ltdco .......

[kobie]

Standard charge of interest is around 4% and general offset rates at the moment are 4% so it doesn't really work.

Maybe I don't understand this process then - need 200k mortgage.. So

100k loan from bank @ 4% costs 4k
100k loan from ltdco @ 4% cost 4k - business accounts pay minimal interest.

Compared with 200k loan from bank costing 8k so technically you are still paying 8k interest but half of which is back to you ltd co.

[northernladuk]

Hi
I think that you can
1. Borrow cash from ltd co
2. Pay into offset mortgage
3. Pay ltdco interest on monies borrowed - but it's back to you anyway.

Risk is that if you need the money back then the mortgage company will re-asses your ability to pay so might not agree to you recovering all of the offset !!!

Cheers
Kobie

Standard charge of interest is around 4% and general offset rates at the moment are 4% so it doesn't really work.

[northernladuk]

I'm sure PUMA (of accounting/legal forum fame) had a method for offsetting your company reserves against a mortgage (with an offset product).

I don't know if he's still around for a PM, but might be worth a searcharoonie.

It was through trusts but has never been tested but there was a case recently of a guy trusting his money out wish went badly for him. To be fair he was doing everything under the sun to look and act dodgy and they were not done properly but even so, on that basis I am off that idea.

[kobie]

Hi
I think that you can
1. Borrow cash from ltd co
2. Pay into offset mortgage
3. Pay ltdco interest on monies borrowed - but it's back to you anyway.

Risk is that if you need the money back then the mortgage company will re-asses your ability to pay so might not agree to you recovering all of the offset !!!

Cheers
Kobie

[Moscow Mule]

I'm sure PUMA (of accounting/legal forum fame) had a method for offsetting your company reserves against a mortgage (with an offset product).

I don't know if he's still around for a PM, but might be worth a searcharoonie.

[psychocandy]

Uk tax laws are such a bummer.....

Just take all the money out of company account, pay off mortgage, throw VAT and CT demands in bin. Put head under quilt and hide. Simples....

[css_jay99]

Barclays & Virgin offering Low rates on 2 year fixed deals

Barclays offering 2.39% on 2yr tracker while Virgin is 2.55% on 2yr fixed/tracker

I was wondering if these two are contractor friendly and if they take direct applications as well ?

css_jay99

[rd409]

how come £450? did you re-negotiate?.

Their terms states





css_jay99

Nope, I think they recently hiked their prices. I strongly advise to get the quotation for the best mortgage products from each broker and then compare the complete package, and not just the brokerage.