Partner only contracting - difficult to find a lender

jjthe

Hi,

I'm a first time buyer and I'm fully employed with a good salary, but my partner is currently only contracting with a law firm but she is on a good salary and there is next to no chance that she won't be employed there for the forseeable future.

Is there any way to get a lender to warm up to this? She's been in a similar role with a different company for 2.5 years previous to this, but she was permanent there and not contracting.

Any advise would be greatly appreciated.

Thanks,

Jonathon

ilkz

We were literally in the same position as I started contracting only 3 months ago and moved from a permanent job to do so (within the same field of work). Was at the previous company for just over 2 years and was employed full time before that in a different field of work (for over 3 years).

Unfortunately having spoke to a broker it was recommended to leave me off the mortgage application stage as I had under 2 years contracting experience which is generally rejected by most lenders.

Luckily though we managed to secure the loan amount we required with the OH salary alone at 85% LTV.

Speak to a whole of market broker though and see what they say!

Good luck.

HappyMJ

jjthe wrote: »

Hi,

I'm a first time buyer and I'm fully employed with a good salary, but my partner is currently only contracting with a law firm but she is on a good salary and there is next to no chance that she won't be employed there for the forseeable future.

Is there any way to get a lender to warm up to this? She's been in a similar role with a different company for 2.5 years previous to this, but she was permanent there and not contracting.

Any advise would be greatly appreciated.

Thanks,

Jonathon

It depends on the contract of employment. Is she employed under PAYE where her tax and NI is deducted at source or is she self employed invoicing the company and paying her own tax and NI...or does she own a limited company through which she is employed by her own company and that company contracts with the law firm for services provided.

jjthe

HappyMJ wrote: »

It depends on the contract of employment. Is she employed under PAYE where her tax and NI is deducted at source or is she self employed invoicing the company and paying her own tax and NI...or does she own a limited company through which she is employed by her own company and that company contracts with the law firm for services provided.

Hi,

She is employed under PAYE where her tax and NI is deduced at source through an agency. So the firm she works at pays the agency, who in turn pay her wage which is taxed + NI.

Thanks for your help.

kingstreet

How long has she been with the agency?

Two years or more and 80% and I got one through no problem. You'll probably need a broker, unless you want to risk "death by a thousand cuts" on the High Street, being credit searched every hundred yards.

As a professional, with a career history, you may get a way with less than 2 years, if the LTV is okay.

jjthe

She's only been with this particular agency since April - she was full time employed then as a PA. Is it worth trying to swing that she was contracting in her previous role? She was effectively PA for a directory who was a friend for 2.5 years and never officially had any sort of employment contract, and he'd be willing to say that he was 'temping'/'contracting'.

LTV we're trying to get is 85% but we could stretch to 80% if we had to - the extra 5% cash was going to go towards some improvements but if it was make or break then we could use it for deposit.

kingstreet

So, she's an administrator, not a solicitor?

Find yourself a good whole market broker for this. She's an agency worker, not a contractor, from a lender's perspective.

With only a short period and no defined career path you might struggle. See what some of the others think.

HappyMJ

jjthe wrote: »

She's only been with this particular agency since April - she was full time employed then as a PA. Is it worth trying to swing that she was contracting in her previous role? She was effectively PA for a directory who was a friend for 2.5 years and never officially had any sort of employment contract, and he'd be willing to say that he was 'temping'/'contracting'.

LTV we're trying to get is 85% but we could stretch to 80% if we had to - the extra 5% cash was going to go towards some improvements but if it was make or break then we could use it for deposit.

She is an employee. The agency is the employer. She only needs a few payslips showing her wages to present to a bank for proof of income. It doesn't matter that the employment contract may be terminated soon. Even a permanent contract of employment can be terminated with little notice.

I got my last mortgage only being with the "agency" for a few weeks but I had a long history of contracts going back many years with many other agencies.

Thrugelmir

jjthe wrote: »

She's only been with this particular agency since April

When does the contract end? Or is is she on an open temporary assignment?

jjthe

It currently ends in January, but there is currently talk of her being made full time at the firm she is working for.

Thrugelmir

jjthe wrote: »

It currently ends in January, but there is currently talk of her being made full time at the firm she is working for.

Then personally I would wait for confirmation of permancy before taking the plunge.