Newbie help required

**davisc02** · 22 June 2006, 11:37

1) I had only been in my first contract 3 months and I got a self cert mortage no problem. You have to have a minimum of 15% and will pay slightly higher rate but not to much.
2) You'll be best to jack in your job then look or save up your holiday i.e 2 weeks worth then you'll only need to give 2 weeks notice.
3) Not sure but more tax efficient with your own ltd co.
4) What benefits? If you think you'll need benefits (I presume you mean dole)between contracts then stay perm!!

**Cowboy Bob** · 22 June 2006, 11:38

Originally posted by 2scoops

Newbie here so be gentle

I'm getting really bored of my current permie job i've been there for 6 years and i'm ready for a change and i'd also like to earn more money, (as my employer pays under the market rates).

I have some simple questions that i would appreciate some advice on.

1, How easy is it to get a mortgage when you are a contractor?

Very difficult if you want to use the High Street lenders as they use terms like "salary", "years in job" etc which don't meaningfully apply to contractors and their business processes don't necessarily accomodate the distinction. There are companies that offer mortgages aimed at the contractor sector though. One that comes to mind is - http://www.coulsonpritchard.com/itco...ormortgage.asp

Originally posted by 2scoops

2, My current employer requires 4 weeks notice if i get offered a new job, most contacts seem to be for immediate start dates, will this notice period be a problem, will i have to jack my job in to go contracting?

You will more than likely have to take the risk and jack in your job.

Originally posted by 2scoops

3, I think i will go the umbrella company route, is ContractorUmbrella.com a good choice?

I don't use a brolly, but from reading various forums ContractorUmbrella have a reasonable reputation, as do Parasol (though they have apparantly had some troubles with a recent system upgrade)

Originally posted by 2scoops

4, What benefits can you claim in between contracts?

None that I'm aware of, but then that's why we get paid the high rates

Originally posted by 2scoops

Thanks,

2scoops

You're welcome.

**2scoops** · 22 June 2006, 11:47

Thanks for your advice

I'll probably have to wait till October to jack the job in as i've got about three weeks booked off in October for my wedding and honeymoon

**John Galt** · 22 June 2006, 12:07

I do use ContractorUmbrella and they offer a good service

**Ruprect** · 22 June 2006, 12:18

1) No problem at all. contractormoney.co.uk sorted mine out - they have contacts with high street banks so you can get the high street deals without the hassle of talking to a bank manager who doesn't understand the nature of IT contracting. Mine was 5% deposit with Woolwich last year.
2) Usually you have to be available straight away but not always. I gave 4 weeks before my current contract and the (new) client was prepared to wait. Just tell the agent - all they care about is getting the commission, so if they can swing it (and you are a good candidate) then they'll probably try to. Worth a bit of speculative calling IMHO.
3) Agree with davis - run your own firm (with an accountant if you want) - its not that hard
4) ??? you make your own benefits in this game my friend.

**cojak** · 22 June 2006, 18:11

How's the eye, Ruprect?

**VectraMan** · 22 June 2006, 19:51

I never went through with it, but I got some advice from Parasol Financials and they recommended a Northern Rock mortgage which was fine for contractors. The only stipulation was you had to have been doing it for 6 months (or had a contract that would take you beyond 6 months). And that was a 95% mortgage with a personal loan to cover at least the other 5% and pay off any other personal loans (and I have about £10K worth). So effectively a 100% mortgage.

The other really good thing about that deal was you could take payment holidays when not working, and overpay when you were - i.e. pay yourself a big dividend every 3 months and pay off a chunk of the mortgage.

As for taking the plunge, I think the best advice is start saving. Even if you get a job on day one of looking, if you're lucky enough to go direct you might not see any money for 2 months.

**tim123** · 23 June 2006, 02:06

My personal experience is that, provided you have three years trading accounts, the High street lenders are more clued up than a high street broker.
The latter were a complete waste of space and didn't understand the concept of freelancing at all.

Of course without the accounts the Bank's will be difficult too, so a specialist broker is probably the way to go.

Tim

**Ruprect** · 28 June 2006, 12:03

Originally posted by cojak

How's the eye, Ruprect?

Which one cojak? The brown one?

Newbie help required