Am i facing mortgage problems?

[itsnotarace]

Hi,

First time poster here, and looking for some advice.
Basically, I have been contracting as a Business Analyst for two years now, and before that I was a full time PAYE employee in the same business area. I had to take some personal time off though between April and August and have just started a new contract (initial term is 3 months.)

However, myself and my husband would like to move house. We currently have a mortgage which we took out when we were both PAYE, and my husband is still PAYE. We both earn more now than we did when we took out the mortgage, but when we spoke to a mortgage adviser at a high street bank the other day the amount she reckoned she would be able to offer was very surprising...in a very low sort of way, given my daily rate.
Obviously the mortgage market has changed radically in the past few years, but I'm not convinced she knew much about contractor mortgages either.

Does anyone know if we are likely to come up against major issues when applying for a mortgage because of the 5 months I've had off? During this time, I have still been drawing a salary from my Ltd company.

Thanks for any help

[eek]

Hi,

First time poster here, and looking for some advice.
Basically, I have been contracting as a Business Analyst for two years now, and before that I was a full time PAYE employee in the same business area. I had to take some personal time off though between April and August and have just started a new contract (initial term is 3 months.)

However, myself and my husband would like to move house. We currently have a mortgage which we took out when we were both PAYE, and my husband is still PAYE. We both earn more now than we did when we took out the mortgage, but when we spoke to a mortgage adviser at a high street bank the other day the amount she reckoned she would be able to offer was very surprising...in a very low sort of way, given my daily rate.
Obviously the mortgage market has changed radically in the past few years, but I'm not convinced she knew much about contractor mortgages either.

Does anyone know if we are likely to come up against major issues when applying for a mortgage because of the 5 months I've had off? During this time, I have still been drawing a salary from my Ltd company.

Thanks for any help

Find a specialist mortgage adviser and speak to them. Power Mortgages posts on here, Contractor Money have been discussed on here and I'm sure there are others.

[BrilloPad]

Does anyone know if we are likely to come up against major issues when applying for a mortgage because of the 5 months I've had off? During this time, I have still been drawing a salary from my Ltd company.

Thanks for any help

No.

Next

[stek]

Caught by IR35 most definitely...

[handyandy]

I'm not sure what the rules are re referencing mortgage brokers on this site. I'm also no longer contracting (went perm a few years back) but I have lot's of friends and a few people who work on projects for me who do.

When I last needed a mortgage as a contractor (about 6 years ago) I went to a specialist broker that focussed on contractor mortgages. They charge a fee (I think it was around £500) and I suspect they also got some intro commission from the bank. They worked on the basis that they took a copy of your contract and used a specialist underwriter to insure the risk you'd default. They base the amount you can borrow on a multiple of gross rate and were doing up to around 4 x annual contract value.

The good thing is they were getting access to good rates with high street lenders and had fixed and variable loans available.

Whilst I hesitate to praise financial intermediary companies (I always feel it is money for old rope) I do feel (6 years down the line) that the deal I got was really good and well worth the fee I paid - no accounts required, no problem with 3 month contract at that time and very quick.

No idea what their deals are like now or if the 'bar' has been raised but 6 years ago was a very tough time to get mortgages.

The company (mods feel free to censor if I've crossed a line) was contractor mortgages made easy and the person I spoke to was Andy McBride. Yes, I reckon if I gave you my name I'd get some kind of reward for the introduction but I've got too many boxed pen sets already! )

[Martin@AS Financial]

Hi,

First time poster here, and looking for some advice.
Basically, I have been contracting as a Business Analyst for two years now, and before that I was a full time PAYE employee in the same business area. I had to take some personal time off though between April and August and have just started a new contract (initial term is 3 months.)

However, myself and my husband would like to move house. We currently have a mortgage which we took out when we were both PAYE, and my husband is still PAYE. We both earn more now than we did when we took out the mortgage, but when we spoke to a mortgage adviser at a high street bank the other day the amount she reckoned she would be able to offer was very surprising...in a very low sort of way, given my daily rate.
Obviously the mortgage market has changed radically in the past few years, but I'm not convinced she knew much about contractor mortgages either.

Does anyone know if we are likely to come up against major issues when applying for a mortgage because of the 5 months I've had off? During this time, I have still been drawing a salary from my Ltd company.

Thanks for any help

Hi Itsnotarace

As a contractor you are in a fortunate position in that we can either work off your limited co accounts or daily rate. Working off your accounts is preferential as it opens up more options. Furthermore, lenders will not need to know about your 5 month break. How long has your ltd co been running for and how many sets of accounts do you have?

[Wanderer]

The company (mods feel free to censor if I've crossed a line) was contractor mortgages made easy and the person I spoke to was Andy McBride.

No relation to handyandy then?

[handyandy]

No relation to handyandy then?

nothing so obvious I'm afraid - I picked up the nickname a good few years back as some colleagues thought I looked and sounded like the bloke off of changing rooms (the other choice I had was cockney W****er)

[FarmerPalmer]

Hi Itsnotarace

As a contractor you are in a fortunate position in that we can either work off your limited co accounts or daily rate. Working off your accounts is preferential as it opens up more options. Furthermore, lenders will not need to know about your 5 month break. How long has your ltd co been running for and how many sets of accounts do you have?

The 5 month break would be obvious in the years accounts as the turnover would be significantly lower. It might be worth looking for a mortgage based on your current contract and rate, but talk to a specialist mortgage broker like Contractor Money (as an example, no connection, just that they sorted me out with a mortgage 5 years ago when the High Street banks were saying "No").

[GazCol]

Caught by IR35 most definitely...

How so? She works in the same business area as when she was PAYE - not necessarily for the same business. Unless I'm misreading things.