Joint contractor mortgage

**northernladuk** · 31 July 2019, 16:27

Speak to John Yerou or any of the advisers at his company Freelancer Financials. Contractor mortgages have come a long way in recent years but each lender still has very different criteria they will lend against for some reason. Things will have changed but at one point I believe Halifax needed X months left on the gig where Virgin (or what it Barclays) didn't like gaps.

On the whole they all take a mix of perm and Contract income so if you've mixed perm and contractor time it's not an issue.

Speak to them and they'll get the situation off you and get you with the provider with the best rates that's willing to meet your criteria.

**PerfectStorm** · 31 July 2019, 20:04

Go straight to Halifax which is what all these companies do anyway, and do it without having to pay their fees which offsets any 'exclusive rate'

**northernladuk** · 31 July 2019, 20:34

Originally posted by PerfectStorm View Post

Go straight to Halifax which is what all these companies do anyway, and do it without having to pay their fees which offsets any 'exclusive rate'

This is an option yes but I hear Barclays are challenging them with their rates at the moment so at least have a look at them if you are going to go down this route.

**fiisch** · 31 July 2019, 21:28

Halifax love contractors. 48 * 5 * current daily rate to work out the salary they will take into account for a contractor (yes, it's generous). The only proviso is you need at least a month remaining on your contract. Assuming your credit histories are up to scratch and you don't have massive outgoing payments servicing debt, you should theoretically have no issues borrowing up to £500k (that's their maximum borrowing cap regardless of PAYE/contract) from the Halifax without needing to consult a specialist broker.

One of the reasons I returned to contracting was to extend affordability to get us into a larger family home. Massively overstretched, some might call it irresponsible... time will tell.

**BoredBloke** · 1 August 2019, 09:38

I used Clydesdale/Yorkshire bank and was impressed by them. Everything was done over the phone and was pretty quick

**JoJoGabor** · 1 August 2019, 10:18

Originally posted by fiisch View Post

Halifax love contractors. 48 * 5 * current daily rate to work out the salary they will take into account for a contractor (yes, it's generous). The only proviso is you need at least a month remaining on your contract. Assuming your credit histories are up to scratch and you don't have massive outgoing payments servicing debt, you should theoretically have no issues borrowing up to £500k (that's their maximum borrowing cap regardless of PAYE/contract) from the Halifax without needing to consult a specialist broker.

One of the reasons I returned to contracting was to extend affordability to get us into a larger family home. Massively overstretched, some might call it irresponsible... time will tell.

Halifax have loaned me more than £500k as a contractor, and that's with only me working

**Samm** · 1 August 2019, 12:33

One of the issues for me could be the gaps between contracts of longer than 6 weeks and from my understanding Halifax don't like to see gaps. Maybe the best thing option would be to work 12 months solid with minimal gaps and then apply as I have just secured a 6 month contract with a likely extension. If I were to do this would they still look at my past contracts and would the gaps bother them even if I were to be working the past 12 months with an extension?

**northernladuk** · 1 August 2019, 12:43

I don't know if they will look at the gaps however they will want an SA302 from a number of years back. Each lender has different criteria. Give them a call and find out?

**PerfectStorm** · 1 August 2019, 13:57

Halifax just wanted to see my current one with a month left.

Don't think they even took the statements when I brought them round

In their words "I don't know why more banks don't take contractors, they never default on their payments"

Joint contractor mortgage