Freelance Worker Mortgage

Emmafreelance

I was wondering if anyone else has had trouble getting a mortgage because they are freelance?

Me and my fianc!e are both freelance in the television industry and are currently looking to buy our first home. We work on a contractual basis;daily, weekly and monthly.

We earn an above average wage between us and are not self employed.

We're also getting married this year so wanted to have our own married pad.

Anyone?.

NeverEnough

I don't understand what you mean by "we are not self employed"......but you are freelance. So do you have an employer? One single employer who provides you with short term jobs then? If you do jobs for various companies on a contractor basis and only get paid for the job you do, then you are self employed. You may or may not work via a limited company as many self employed people do, but you are nonetheless self employed.

As for mortgages- its really quite difficult and you need a broker who knows what they are doing to find you a mortgage - you will have to be able to prove several years of income from your yearly accounts records.

Emmafreelance

We work for many companies who pay us on a PAYE basis. We do not submit a tax return at any point.

Thanks

Dave_Ham

A broker will know where to place this and may be worth speaking with one, although there are still a few unknown variables around employment track record, deposit as a % of purchase price etc.

I assume you are hired on a weekly/monthly contract and hence why paid PAYE?

NeverEnough

Then you are going to have a real problem I am afraid - completing a Tax Return is not normally a Voluntary exercise unless you have a low income, which you have stated is not the case.If you have numerous employers who deduct PAYE you would need to complete a Tax Return at the end of each year reflecting the total income from all these employers and the total tax paid - the tax codes applied may not take into account all your other income, so you may well end up owing more tax than you have paid. I was certainly not aware that people earning a high income derived from numerous employers could opt out of completing yearly tax returns, no doubt someone will advise shortly.

Emmafreelance

Dave_Ham wrote: »

A broker will know where to place this, although there are still a few unknown variables around employment track record, deposit as a % of purchase price etc.

I assume you are hired on a weekly/monthly contract and hence why paid PAYE?

I've called about 4 brokers so far and they've all said the same..., "Sorry, I can't help".

We take on weekly monthly and daily contracts yes.
We have a 15K deposit at the moment, but I inherited a house in another town that I currently have tenants in, I didn't want to sell this but if worst comes to worst ill have to.

Emmafreelance

NeverEnough wrote: »

Then you are going to have a real problem I am afraid - completing a Tax Return is not normally a Voluntary exercise unless you have a low income, which you have stated is not the case.If you have numerous employers who deduct PAYE you would need to complete a Tax Return at the end of each year reflecting the total income from all these employers and the total tax paid - the tax codes applied may not take into account all your other income, so you may well end up owing more tax than you have paid. I was certainly not aware that people earning a high income derived from numerous employers could opt out of completing yearly tax returns, no doubt someone will advise shortly.

We usually both receive a rebate, but have never been asked to fill out a tax return. Curious, ill investigate this with the tax office.

A number of people in our industry work this way.

Dave_Ham

It may be worthwhile considering raising finance on this inherited property to bump up your deposit and make your rate/circumstances more attractive.

I am a tad confused about how your tax code can be accurate, although assume you get a p45 at the end of contract and give that to new employer??

Simon_gloster

In short and predominantly blunt, what income has been declared whether employed or not to HMRC for the last 3 yeas. This is the figures to be used for lending purposes.

holly_hobby

Media/TV work has always been exceptionally hard to place, given the variables and the unpredictable nature of the industry - albeit those whom work "behind the scenes" so to speak tend to be easier to place than those at the sharp end (depending of course on their speciality and if they are a large fish in a small pond, or perform a role that is more easily filled).

In essence I would class you as an agency worker, as although you change employment location, you are PAYE of the agency, whom in essence provide/place you when their Client submits a staffing request. To which end the lender may require confirmation from HMRC of your annually declcared income over a period determiend by them.

You have found from the several individuals you have contacted, that the general mortgage broker has little media experience or probably exposure to such enquiries (which is to be expected really, with my experience coming from placing such enqs nationally for brokers whom didn't have a clue where to start or were having difficulty placing generally ), so you can see a specalist broker is reqd here, but its finding one. To that end, the first port of call I would make is to speak to your colleagues whom work in the same enviroment (inc actors/public facing individuals who really struggle ! ), whom may be able to refer you to a broker whom has been succesful for them.

If you are a member of a media union such as Equity or tradebody, then also contact them to see if they have any affiliation or knowledge of lenders/brokers whom are familiar and comfortable with this type of enquiry.

Hope this helps ... I wish you well

Holly x

Emmafreelance

holly_hobby wrote: »

Media/TV work has always been exceptionally hard to place, given the variables and the unpredictable nature of the industry - albeit those whom work "behind the scenes" so to speak tend to be easier to place than those at the sharp end (depending of course on their speciality and if they are a large fish in a small pond, or perform a role that is more easily filled).

In essence I would class you as an agency worker, as although you change employment location, you are PAYE of the agency, whom in essence provide/place you when their Client submits a staffing request. To which end the lender may require confirmation from HMRC of your annually declcared income over a period determiend by them.

You have found from the several individuals you have contacted, that the general mortgage broker has little media experience or probably exposure to such enquiries (which is to be expected really, with my experience coming from placing such enqs nationally for brokers whom didn't have a clue where to start or were having difficulty placing generally ), so you can see a specalist broker is reqd here, but its finding one. To that end, the first port of call I would make is to speak to your colleagues whom work in the same enviroment (inc actors/public facing individuals who really struggle ! ), whom may be able to refer you to a broker whom has been succesful for them.

If you are a member of a media union such as Equity or tradebody, then also contact them to see if they have any affiliation or knowledge of lenders/brokers whom are familiar and comfortable with this type of enquiry.

Hope this helps ... I wish you well

Holly x

Thanks HollyHobby! Asking colleagues is not something I'd thought of because I thought it was such a personal thing to ask. However people are happy to help.

But since I posted this I have had three offers of a mortgage in principal! I just needed them to understand my situation as you said, it's not an easy industry to understand! So thanks!

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