Mortgage for a Sub Contractor

tarajayne

We were hoping to port our mortgage with the Chelsea when we moved but my DH is a newly SE Sub Contractor which I understand is looked at slightly different to SE by some companies. After a bit of research it looks like Chelsea may not be one of those willing to lend but we can go elsewhere if we can prove his contracts have some time remaining on them, anyone had any experience of this?

ACG

Yea, if the contract has some time left to run (this can vary but 6-12 months minimum) should give you a few different options.

tarajayne

ACG wrote: »

Yea, if the contract has some time left to run (this can vary but 6-12 months minimum) should give you a few different options.

Thank you, so it's not impossible then. All three companies he sub contracts for say the work is there for as long as he wants so are happy to write letters confirming at least a year, I was worried that without a years books it could be a problem.

tarajayne

Any idea what we need as proof, will a letter be enough?

Simon_gloster

Mainly if you sub to one contractor and that contractor pays tax and NI, then your treated as employed. More than one contract and you have to use an accountant for tax, then you are self employed therefore the standard min 2 or 3 years proof from hmrc confirming how much income is declared for tax purposes via SA302's.

You choice of lenders is very limited, possibly none available. The amount of work ahead helps, but 18-24 months previous would not be a problem to place.

ACG

As above, i didnt realise it was multiple companies. It might be more difficult with no accounts.

This is definately one for a broker i think as i dont think a high street lender would touch it. Its more one for niche lender. Depending on your deposit (10% wont cut it, more like 20%) it should still be possible but it will be a hard case to place i think.

tarajayne

Ah ok, it's three companies, and they all pay via CIS so they take the tax then pay him. Quite the norm for sub contractor. And our deposit is approx 75%.

ACG

75% deposit should be fine.

Speak to a broker but they should be able to get this through i would imagine. It depends on the lender as to what proof they will want but i do think youll need a broker for this.

TrickyDicky101

It might be worth asking his colleagues who they have mortgages with/what brokers they used. I'm assuming that there will likely be quite a few where your husband works also paid on CIS

Simon_gloster

That makes it more appealing to a lender, CIS is not considered a problem as 'payslips' in the loosest sense can be proven. Its all about the tax paid at the end of the day.

You wont find whether or not x lender will entertain CIS on lenders websites, a call to them would do it.

Again as its more than one main contractor......methinks you go down the self emp route.......i could be wrong. It makes sense if your contracted to one employer to be employed if they pay your tax, any other circumstance self employed.

Nicboys

Hi
I'm new to all this and am looking for some help. In short myself and my husband have held a mortgage for over 10 years with the same lender, we want move and have had some major problems with the lender first they agreed to port then took it back for no reason. The issue is my husband was forced into self employment ( I told them this when they first agreed) in march this year after 3 redundancys in 2 years. He has been a plumber for 20 years and now sub contracts out. He stayed with one contractor from march to early September - 6 months, and is now 5 weeks into an indefinite contract with some else. His tax is paid by the company's he works for by cis scheme. We have invoices we have supplied and bank statements which verify his weekly earnings. We are looking at a 75 Ltv on the new house.
Any pointers would be gratefully received as we have sold our house and have had an offer excepted on the new one. We only want to move to get our boys into better local schools. Soooooo frustrating

Thanks