Mortgage while in between contracts

[d000hg]

If you're not using a specialist contractor mortgage provider, I'm not sure they'd even ask. They'd likely want your last 3 years' tax returns, proof of earnings (SA302?) and even a letter from your accountant but I don't recall being asked my daily rate or "are you earning right now" - I've always got a regular mortgage through my IFA/mortgage advisor who is in some way able to vouch for me I think.

[CMS71]

remortgage

Hi, want to remortgage my residential property, am a contractor through my own Ltd, wonder if anyone knows the latest re remortgaging while in between contracts? Last time I applied for a mortgage they wanted proof of the contract as well as ltd company and personal income proof.

Hi Sandy D it typicaly depends on which lender your with some will allow you to remortgage with little evidence as long as your doing a like for like remortgage and not requesting any changes

[vwdan]

If you're not using a specialist contractor mortgage provider, I'm not sure they'd even ask. They'd likely want your last 3 years' tax returns, proof of earnings (SA302?) and even a letter from your accountant but I don't recall being asked my daily rate or "are you earning right now" - I've always got a regular mortgage through my IFA/mortgage advisor who is in some way able to vouch for me I think.

Yeah - my circumstances were a touch different because we were primarily lending based on my wifes salary but our IFA just treated me as a Ltd Company director. Never mentioned contracting or contracts - just handed over my accounts and tax returns.

[kaiser78]

Barclays are contractor friendly, or certainly were when I was looking to re-mortgage, although this was a couple of years ago now. Worth giving them a shout.

[Lance]

Barclays are contractor friendly,.

as long as you're a customer not a supplier

[Power Mortgages Ltd]

Barclays are contractor friendly, or certainly were when I was looking to re-mortgage, although this was a couple of years ago now. Worth giving them a shout.

They were a contractor friendly lender but ceased being so a number of years ago now unfortunately. They would now require evidence of salary and dividends over 2-3 year average. They may be able to factor in any retained profit for each year within that period too but going down the route of using accounts as your proof of income, there are other options which could be more beneficial.

As one previous poster has said, your existing lender should be able to switch you over to a new deal so long as it is on a like-for-like basis, e.g. no additional borrowing and you are not decreasing the remaining term of the mortgage although there are a few lenders out there who would still request proof of income in this scenario. I think with these lenders you should be able to argue it through though as their 'risk' is not increasing - they already hold the mortgage anyway.

Other lenders if you wish to switch away would need proof of your income and if you are in between contracts then it would be the conventional route of Limited Company accounts and/or SA302 tax calculations which you would need to prove. It may be worth speaking to a specialist broker who will understand your circumstances as they will know which lenders favour which method of evidencing your income to suit your needs and circumstances.

Hope that helps?

Ben

[rawly]

Just my two pence worth, as I did a re-mortgage only last month.

For the past 4 years I'd been using Contractor Financials, but rightly or wrongly they now charge quite a hefty fee (used to be free), so I went it alone last month. My current provider (Clydesdale) simply were not competitive anymore. They didn't even move their base rate when BoE moved down the other month. Plus they had hefty redemption penalties and admin fees for all their products. They made it simple for me to choose a new product, however, just login to my account and choose it online with just a few clicks.

However, I chose to go with Nationwide, who I could see had a very clear policy on dealing with Contractors. I had an 'in principle' decision immediately just based on a credit check and entering my income for the past two years which was Salary + Dividends. I then proceeded to the full application, which was about 15 minutes online. For me as Ltd all they wanted was a screenshot of my HMRC online assessment for the past 2 years or an accountants Certificate. I chose to send them the HMRC screenshots showing my SA returns for the past 2 years. There was no questions what so ever about my current contracts, or any breaks, or anything of that sort.

My mortgage got approved within 2 days and the re-mortgage happened within 3 weeks, no Fees at all, or redemption penalties. It was so simple. Saved over £50 a month and knocked a year off the term at the same time compared to my previous provider.

Hope this helps.