Mortgage where one applicant is an IT Contractor

Deb_154

My partner and I have just been declined a mortgage with HSBC at the underwriting stage due to my partner's employment status - he is an IT contractor employed by an Umbrella Company (I am a permanent employee).

I was therefore wondering if you could offer any useful advice on obtaining a mortgage where one applicant is an IT contractor? Would it best for us to use a specialist company such as Contractor money or go back to a 'normal' mortgage broker? Can you advise which banks/building societies are particularly contractor friendly?

Many thanks for your help.

Meeper

Why would you not want to use a mortgage adviser?

Deb_154

We did use one originally who recommended we go direct to HSBC to get the best rates. I am just keen to ensure we don't get declined again really as we lose our dream house. I just wondered whether 'specialist' contractor mortgage companies would be a better idea.

Meeper

He should have done his homework better. A quick phonecall to HSBC would have confirmed that they wouldn't accept this employment status. There aren't any "specialist" contractor mortgage companies. Many lenders will accept the criteria, your adviser just needs to do something to earn his money, make some calls, and find an appropriate lender.

Deb_154

Thanks for your advice.

MBM

It is not a problem, there are a number of lenders who will look at his daily rate, multiply by 5 and then by 48 to give an annual income which they will work from.

Wh05apk

IT contractors especially are not uncommon, where ever BT are there are loads! as I think a few years ago, they laid most of them off and took them straight back as contractors for tax reasons.

As has been said many lenders are happy with this, generally his contract will need to have been renewed at least once.

Wh05apk

MBM wrote: »

I could tell them to get a quote from you and then use my website to get 50% of the commission, but I wouldn't.

because I would do 55%!:rotfl::rotfl:

Deb_154

I am still having major problems securing a mortgage due to my partners employment status. Nearly 4 weeks ago we applied to Abbey for a mortgage, our broker spoke to an Abbey contact who confirmed they would accept his employment status. However, the underwriters have been very difficult asking lots of questions and requesting a lot of documentation (one piece at a time and then taking days to review it before requesting more information).

Today they have requested a copy of his P60 from 3 years ago. My partner wasn't employed on the 5th April that year and therefore did not receive a P60 but they won't accept the copy of his P45 from that year we have already supplied (he left at the end of the tax year and started new job after 5th April).

I get the impression they are looking for a reason to decline us. I don't know what to do next really. Will we get anywhere with any mortgage company?

jonathanmiller

Can the accountant not do a reference on the umbrella company? Copies of existing contracts and previous contracts? Confirmation from existing contractor company that they see no reason why it won't be repeated? There are lenders that can do this stuff straight away though Abbey wouldn't have been top of my list re the criteria.

As for Abbey, service standards have slipped since late Jan and they can be quite frustrating with the questions they come back with.

peeb

Google "contractor money" and go for the top result (Sorry, can't post the link)

Used them twice over the past 5 years to secure a mortgage while an IT contractor and currently using them again while buying a new house.