Joint Mortgage: Full Time Perm + Full Time IT Contractor

smevans

Hi,

I have been in my current full time perm IT job for 8 years now and prior to that I had a similar job which I was with for 7 years. I have been offered a possible opportunity which will nearly double my salary but the sticking point is that it will be a 1 year fixed term contract (with a view to extension).

My wife and I and wanting to move soon and get a 90% LTV joint mortgage (July 2014), she works full time in permanent employment.

Supposing I started in January, would 6 months of contracting be an issue with getting a mortgage?

I have never contracted before so I am not sure if it would be a self employed situation or whether I would end up going through an agency or umbrella company yet.

My wife works in the loans industry and seems to think we may have issues getting a mortgage?

Is she right?

Thrugelmir

Why do disbelieve her?

Let_Us_See

Listen to your wife.

smevans

Of course I don't disbelieve her but it's useful to hear from other people who may have been in a similar situ.

bluedrum

Getting a mortgage after 6 months of contracting is possible, depending on your circumstances...

I got one on my own in 2010 after about 5 months of contracting and being paid via an umbrella company. If you form a Ltd company then then lenders will usually want 2/3 years of accounts if you go directly to them.

I would advise talking to a specialist contractor mortgage broker as they should know what is/isn't possible - googling 'Contractor Mortgages' brings up most of them...

Let_Us_See

There is no such thing as a Contractor Mortgage, and any firm pertaining to be able to provide such mortgages, has no greater access than any other whole of market broker/adviser. Many High Street lenders will consider and provide mortgages for contractors, but at the end of the day the choice of lender will depend on employment history - especially length of time as contractor and future potential contracts.

It isn't a specialist knowledge or skill - just a bit of experience and know how.

bluedrum

Let_Us_See wrote: »

There is no such thing as a Contractor Mortgage, and any firm pertaining to be able to provide such mortgages, has no greater access than any other whole of market broker/adviser

I agree that there aren't specific contractor mortgages, but as you say some lenders are more willing to lend to contractors than others, so a broker who is more familiar with contracting seems a reasonable place to ask for advice does it not?

scoot23

Let_Us_See wrote: »

There is no such thing as a Contractor Mortgage, and any firm pertaining to be able to provide such mortgages, has no greater access than any other whole of market broker/adviser. Many High Street lenders will consider and provide mortgages for contractors, but at the end of the day the choice of lender will depend on employment history - especially length of time as contractor and future potential contracts.

It isn't a specialist knowledge or skill - just a bit of experience and know how.

I don't know the ins and outs of it but I have been able to get a mortgage from the Halifax via a specialist broker that I wouldn't have been able to do so by applying directly.

Back to the OP's question- I have just been offered a mortgage as an IT contractor with a limited company. I have had to show 2 years worth of contracts with the agency I work for, to show I have been continually employed but apart from that I haven't needed to show SA302's/Company accounts and it has pretty much been a painfree process.

I recommend calling a few of the specialist brokers out there, they have infinitely more insight into how the banks work than any of us ever can, even after a good trawl of the internet.