Increasing the borrowing facility on my mortgage now that I am a contractor?

[dsana123]

Hi folks,

first post! This year I made the switch to contracting after nine years as a permanent employee. I wasn't sure whether I wanted to contract as a long term option and must admit to being confused about the umbrella company/limited company thing (I still am!). In the end I went through the Parasol umbrella company and am now four months into my first contract.

The thing is, I'm now thinking about buying a house. I currently have a mortgage for a flat I bought six years ago as a permanent employee (the lender is NatWest), and am wondering whether to ask them about increasing my borrowing facility. I don't really want to tell them I'm now a contractor as that may ring alarm bells, but given that I already have the mortgage I'm not sure what they would do. Anyways, my question is:

- Will my new status as a contractor (albeit through an umbrella company) affect the decision of a High Street lender to increase my borrowing facility?

Anyone with similar experiences please chime in. Thanks!

[Lucifer Box]

What you don't tell them can't harm them.

[VectraMan]

Ask Parasol, I thought their mortgage advice was very helpful. Maybe you could move to a more contractor friendly mortgage?

[Mordac]

You are a permanent employee. Of Parasol. So no fibbing needed.

[dsana123]

Thanks

Thanks for your responses. After reading more threads in the General forum I realised that it isn't really for serious topics, so I'm lucky to get reasonable responses

[Spacecadet]

You are a permanent employee. Of Parasol. So no fibbing needed.

yup - and they give references as your permanent employer if any one asks. (they do check with you first to make sure that you're happy for the information to be released)