Redundant and in need of a mortgage!

bawbaguz

Good morning all, I hope someone can give me some advice.
I have just recently been made redundant as the company I worked for has gone under! :mad: I am now working for myself as a contracter through an employment agency within my sector of work and earning £250 - £300 per day. However I am in need of a mortgage and I am seeking advice as to what I can and can't get really. From my understanding I simply won't be able to get a mortgage, but can anyone shed any light on my dilema?
Regards, Ross.

chris.lewis

most lenders wont lend to contractors who haven't been in the same contract for two years, a way round this is to set up your own private limited company, which most contractors prefer to do anyway and all your contracts should be for the company rather than you as a person. You can then pay yourself from your company a regular salary and banks will be happy that you have a regular income. Make sense?

TMSL

The only problem with that Chris is that its likely that the OP would be a majority shareholder and as such treated as self employed by lenders, and will then require two years accounts as a minimum.!

chris.lewis

Thats kinda what I was getting at, you will need to be self employed for two years although some mortgage companies will settle for less, but as most contracts only last a few months you will need to look at setting up an umbrella company now and may have to rent for a while until you hit the 18month/2year mark.

The alternative is you could ask your current employers for a fixed term contract of 6 months/ 1 year which some lender look on more favorably. TMSL probably knows a lot more than me as he is a mortgage advisor.