First mortgage, contractor soon going perm

Nipper78

I've been contracting for 7+ years with the odd break here and there. Come January I'll have 2 solid years across 2 roles. I'm likely going perm in around 6 weeks and wondered what timing people would recommend.

If done on contract I could borrow 250k, whereas perm salary being lower...approx 200k.

Will going perm mean I'd have to entirely re-agree a mortgage deal? Will going perm reset the clock and require 3 months payslips...or will they just plainly factor in my contract history?

amnblog

Nipper78 wrote: »

I've been contracting for 7+ years with the odd break here and there. Come January I'll have 2 solid years across 2 roles. I'm likely going perm in around 6 weeks and wondered what timing people would recommend.

Depends on when you want to buy/remortgage

Nipper78 wrote: »

If done on contract I could borrow 250k, whereas perm salary being lower...approx 200k.

Is £200,000 enough for your needs?

Nipper78 wrote: »

Will going perm mean I'd have to entirely re-agree a mortgage deal? Will going perm reset the clock and require 3 months payslips...or will they just plainly factor in my contract history?

That depends on the Lender.

Nipper78

Want to buy asap.

200k is tight but OK. If mortgaging on my contract rate for 250k and remortgaging say 6+ months later based on new perm salary is likely OK, that'd be best of both worlds.

Thrugelmir

Nipper78 wrote: »

If done on contract I could borrow 250k, whereas perm salary being lower...approx 200k.

Then you'd be lying when you make mortgage application. Not advisable.

Nipper78

I wouldn't be. I am describing applying for a mortgage now as a contractor (as I want to do).

It just so happens I'm fairly confident come 6+ weeks there a good chance I'll be in a permanent position, with a slightly lower salary.

So I wouldn't be lying in my application. What I am asking is, how soon after a change in employment like that would I have to re-negotiate the mortgage, how big a deal would that be. Or am I better off just waiting until my contract to perm situation likely concludes?

amnblog

Sounds like you have answered your own question Nipper.

Nipper78

Nope I haven't. How soon after a change in employment from Contract to perm would I have to re-negotiate the mortgage, how big a deal would that be.

If in instead waited until Perm and applied, would they be looking for 3 months pay slips or would my contract history be enough support?

amnblog

You've lost me.


If you apply whilst a Contractor, why would you need to have to re-negotiate later?

Nipper78

That's what I'm asking. If my employment status changed to perm, for a different company, slightly lower income, would I not have to declare that within a certain time?