Mortgages for IT contractors?

freda

DH is considering looking at IT contracting jobs.

How do mortgage providers deal with customers who have contracting incomes? I have spoken to London and Country who said he would be considered as self employed and therefore need 1-2 years' accounts before being able to get a mortgage. However, on the other hand, SJD accounting's sister company, 'Contractor Mortgages made Easy' said he would be offered a mortgage of up to 48 x weekly rate multiple on day one of a 6 month contract!

So, who is right, and how do I find out more?

Thank you very much.

PS A bit more info - DH has been continuously employed in the same area that he will be contracting in for decades. He resigned and left his employed position 3 months ago and has taken this time as sabbatical/career development time, achieving several qualifications that will enhance his job opportunities.

We would have max 55% LTV (based on the largest mortgage:house value ratio I would be happy with)

He would most likely set up a Ltd Company, take min salary and quarterly dividends rather than use an umbrella company. Although, thinking about it, would there be any mileage in using an umbrella company for a few months (so he has an employer) in order to get a mortgage offer?

amnblog

So, we are not considering an IT contractor, we are considering someone who is about to become an IT contractor.

L&C are wrong, there are specialist deals for contractors available that can be underwritten on contract rate rather than 1-2 years accounts.

These specialist deals however, wont work for someone who is not actually contracting yet.

freda

Thanks, amnblog. I am trying to work out if, by taking a contracting job, we are effectively choosing to either restrict our choice of mortgages or enforce a wait of a year or so before we can move.

How do I find out more about the T&C of the specialist deals, and who will provide them?

Gary123456790

Have a talk to these guys http://www.contractormoney.com/

My Mrs is an IT contractor part time and had 1 years accounts only, she pays herself a small salary plus 6-monthly dividend and it wasn't a problem, we borrowed 4.5x although that figure is always very dependant on individual circumstances.

Ended up with a Clydesdale mortgage through them fixed for 5 years at 2.89%, 2 year fix was 2.24%. I am a full time non-contractor by the way.

Thanks,

Gary.

freda

Thank you Gary

The contractormoney people that you recommended gave me the most common sense, factual answers that I have had from anyone I've called to date.