Really good joint income but self-employed and contractor

ElevenEleven

Hi Folks,

This is my first time here as I really need some advice please. I have done extensive research into this but still cannot seem to get a concrete answer, even from my bank.

So, my situation is that I have been in perm work most of my working career until only 2 months ago when I decided to go into IT contracting partly due to how lucrative it is.

My wife is self-employed and has been for several years so has a couple years of decent accounts submitted and will be submitting her 3rd lot next year.

So really what I am trying to establish is when my wife and I look at getting a mortgage next year will we only be able to go from her accounts alone on how much we can borrow? I have read that some banks like RBS will also take contractors guaranteed income into consideration to top the mortgage up as I have a contract for at least the next 6 months earning very good money.

It does seem crazy that on paper we should be able to get a decent mortgage.

Can someone please help clarify what position we may be in when coming to apply for a mortgage?

Thanks
IW

Let_Us_See

Come back next year when you are ready to apply for a mortgage. In theory there are a number of lenders available, but any advice provided now could completely change in the next 12 months.

Jordo

Are you contracting through a Ltd company? You'll have accounts to file as well in that case. If you're contracting through an umbrella company, you'll have payslips as proof of your earnings. No reason why you can't use either of those to help with a mortgage application.

ElevenEleven

Thanks both for your replies. Saying come back next year doesn't really help. I'm trying to establish what steps we need to put in place so I plan accordingly.

I am contracting through a ltd company and do have accountants that invoice on my behalf on a weekly basis.

CC-Warrior

You can also have a look at mortgages solely for contractors

https://www.google.co.uk/search?hl=en&q=IT+contractor+mortgages&meta=

Let_Us_See

CC-Warrior wrote: »

You can also have a look at mortgages solely for contractors

There are no mortgages specifically for contractors, only lenders willing to consider lending to contractors. Apart from trying to establish continuation of contract and keeping appropriate financial records as proof of income, just carry out your normal role.

A year is a long time in mortgage T & Cs and the whole market could have changed - hence my advice to post again when you are ready to proceed.