Moving from permanant to contract work - how easy to get a mortgage?

gingin_2

Hoping I can get some advice.

OH has been doing IT contract work for the last 12 years and has been in continuous employment. He took a permanent job 14 months ago to enable him to move into a different area.

We are seriously house hunting, viewing a property for the second time today but expect our max. offer will not be enough for the vendor but it's not so ridiculous that it can't be considered. Failing that, if we are not in our own house by the end of the year, I will be pretty frustrated.

Getting a mortgage in principle on a permanent salary has been no problem but OH is now a couple of rounds into an interview for a new job - which is a contract but too good to turn down, unless we can't get a mortgage.

OH is saying that getting a mortgage will be almost impossible if he changes over to contract work as he will go back to having no earnings record (that confuses me as we have company accounts stretching back a long way).

We are planning on putting down a 30-35% deposit and the income multiple for the mortgage on the contractors rate, if annualised, would be about 2.5x income, if that makes a difference.

How difficult would it be to get a mortgage as newly self employed, please and how different/punitive would the mortgage be over one we got on a permanent salary.

Thanks

fabs35

I would say it's close to impossible getting a decent deal without 3 years worth of accounts. Apply for a mortgage now and the offer should be valid for around six months.

Note that you may have to pay a cancellation fee if you do not complete on a property within that six month period.

chrisscott666

im self employed and bought 3 buy to let properties and 2 personal ones with only 1 years accounts, but id get the mortgage now and dont tell them about your change of employment if you do it, as long as your paying them they wont ask

VIGILANT22

Chrisscott666 ......You mean lie and obtain finance by fraudulent means.........

chrisscott666

no as hes in permanent work now so its not telling fibs, hes just not telling them about a change in his work later on. as long as hes paying the bills it wont matter. i know its on the net so you have to say that but come on its hardly crime of the century

VIGILANT22

What is it with you...yr looking to how people can avoid paying SD
This OP has stated about job change "into an interview for a new job "

On yr application you sign saying you will inform about any changes in circumstances.....

This may be a money saving website but not a scamming one........You're an idiot to post as follows ". as long as hes paying the bills it wont matter."

How old are you??...

gingin_2

Thanks for all responses.

The 6 month idea is good, supply is so low here so I would have to hope that something came up in the next 6 months that was suitable. It might be worth the gamble even if it meant losing the fee to secure the mortgage. We've decided that the house we viewed today is a no go and so we are back to square one. I was hoping that we could get the mortgage and house sorted before OH potentially started his new job but that definitely won't happen now.

Does anyone have any more ideas. They definitely won't include the fact that OH has accounting records for over a decade and a current job contract?

chrisscott666

im 32 not that it makes any diffrence, get off your high horse its not like there robbing them, there just not saying about any changes to there current situation. the only time it would ever get called into question is if they missed payments, the new job is more money so providing its long term i really dont see the problem, they can put savings away to cover any out of work time from the extra income and the world is a rosey place

VIGILANT22

chrisscott666 wrote: »

im 32 not that it makes any diffrence, get off your high horse its not like there robbing them, there just not saying about any changes to there current situation. the only time it would ever get called into question is if they missed payments, the new job is more money so providing its long term i really dont see the problem, they can put savings away to cover any out of work time from the extra income and the world is a rosey place

You haven't a bl***y clue what you're talking about...

Quote: its not like there robbing them..........:rotfl:

Application Fraud

http://www.nhunter.co.uk/

When you apply for a mortgage, you must sign a declaration
Declaration
I (each of us if more than one is applying) agree that: (a) you will rely on the information I have given you on this form, which I confirm is complete and true. It is a criminal offence to knowingly supply false information to obtain a loan.

If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies to prevent fraud and money laundering. For further details as to how your information held by fraud prevention agencies may be used please see below.


http://www.cifas.org.uk/default.asp?edit_id=953-28#How_CIFAS_works

Now I suggest you stop posting BS!

new_home_owner_3

VIGILANT22 wrote: »

You haven't a bl***y clue what you're talking about...

Quote: its not like there robbing them..........:rotfl:

Application Fraud

http://www.nhunter.co.uk/

When you apply for a mortgage, you must sign a declaration
Declaration
I (each of us if more than one is applying) agree that: (a) you will rely on the information I have given you on this form, which I confirm is complete and true. It is a criminal offence to knowingly supply false information to obtain a loan.

If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies to prevent fraud and money laundering. For further details as to how your information held by fraud prevention agencies may be used please see below.


http://www.cifas.org.uk/default.asp?edit_id=953-28#How_CIFAS_works

Now I suggest you stop posting BS!

I see your still quoting rubbish, it will be okay next week the schools go back.:rotfl:

chrisscott666

of course your 100% right so i can't really argue which is a shame :mad: and as the house has fallen through its a mute argument anyway.