• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Applying for a mortage

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Applying for a mortage

    Hi,

    I just need a bit of advice, I want to apply for a mortage, but I'm not too sure to apply as a director or as an employee, I was wondering whether to just produce my contract or go to the high street banks with my company accounts.

    Also, has any one of late (in 2010 ) used any services f"or providing mortages" to contractors helpful.


    Helpful advise is welcome.

    Thanks

    #2
    my advice is to learn the difference between advise and advice. you get an awful lot of both on this forum and they frequently come disguised as the other.

    Comment


      #3
      oh, and take my advice - don't listen to me.

      Comment


        #4
        Contractor Mortgage Quote

        Give these guys a try, have been very helpful for me. If you have a contract in place they are able to source deals where a multiple of contract value is offered. So no need to try and explain to a front-line monkey about your set up and get them all confused.

        Comment


          #5
          Originally posted by administrator View Post
          Contractor Mortgage Quote

          Give these guys a try, have been very helpful for me. If you have a contract in place they are able to source deals where a multiple of contract value is offered. So no need to try and explain to a front-line monkey about your set up and get them all confused.

          Thanks, I'll give them a call.

          Comment


            #6
            Originally posted by administrator View Post
            Contractor Mortgage Quote

            Give these guys a try, have been very helpful for me. If you have a contract in place they are able to source deals where a multiple of contract value is offered. So no need to try and explain to a front-line monkey about your set up and get them all confused.
            WHS

            I got my mortgage through them. They were very helpful. They can base the mortgage on the value of your contract.

            Comment


              #7
              Here is a thread I recently started on the subject:

              Mortgages - Yawn!

              I managed to get one direct with the Woolwich although I have yet to take them up on the offer as the house of my dreams slips through my fingers.

              Comment


                #8
                Contractors with a limited applying for a mortgage

                Originally posted by BabyGirl_1 View Post
                Hi,

                I just need a bit of advice, I want to apply for a mortage, but I'm not too sure to apply as a director or as an employee, I was wondering whether to just produce my contract or go to the high street banks with my company accounts.

                Also, has any one of late (in 2010 ) used any services f"or providing mortages" to contractors helpful.


                Helpful advise is welcome.

                Thanks
                If you are working through your own limited company then you are a self-employed contractor. You're probably a majority shareholder and an officer of your company.

                For lending purposes the majority of high street banks will assess you as a self-employed contractor with a limited company. Most lenders will ask you to produce 2-3 years accounts and will base their lending criteria solely on your salary and dividend drawings, ignoring any underlying company profits.

                As you’re probably aware, for tax reasons, many contractors working through a limited company draw a minimum salary and also restrict dividend payments to avoid higher rate tax. This has the unintended consequence of reducing the amount a contractor is eligible to borrow under the standard criteria used by most mortgage lenders.

                This is why it is often better to seek the advice of specialist mortgage brokers. The key is to ensure that the loan application is properly packaged and falls in front of the right decision makers within the lending institutions.

                A good specialist mortgage broker will have direct contact with key people within the lenders Head Office underwriting teams and hopefully, like ourselves, will be able to base your earnings on a simple multiple of your contract rate alone.

                This means that you dont have to rely on the traditional method of using accounts, which will not fully reflect the total earnings that you have at your disposal, for income verification on a mortgage application.

                Whilst most mortgage brokers will charge you a broker fee I'm very proud to say there are still a number of brokers who, like ourselves, are able to deliver this service without cost to the borrower.

                Comment


                  #9
                  Originally posted by Freelancer Financials View Post
                  If you are working through your own limited company then you are a self-employed contractor.
                  You do know LtdCo contractors are NOT self-employed, don't you?
                  My all-time favourite Dilbert cartoon, this is: BTW, a Dumpster is a brand of skip, I think.

                  Comment


                    #10
                    Originally posted by RichardCranium View Post
                    You do know LtdCo contractors are NOT self-employed, don't you?
                    In the strict legal sense as a director in so far as you draw a salary, you are taxed as an employee (schedule E), however you are in business on your own account as a contractor trading through a limited company that you own and control and for this reason lenders (the underwriters) will treat you as self-employed.

                    Comment

                    Working...
                    X