IT contractor partner buying into house

IrishRed_2

Here is my situation
My partner is going to buy into my house by equating the equity I have built up and then we want to take out a joint mortgage on the remaining balance.

My current mortgage is my sole name and when I got it out 3 years ago following divorce the loan was based on my earnings which I have sustained in permanent employment.

Also we would be looking to pay off some of the mortgage balance with him buying into the house so would also be reducing the morgage me need.

This is where it seems to get complicated. My partner is an IT contractor and he operates via a limited company. His company has been in existence for 10 years. His company has a healthy bank balance and he has a history of long term contracts and continuous employment. He decided to start the mortgage hunt and was in contact with a "specialist" broker for contractors recommended by his accountant. Their sellilng techniques suggest that high street lenders will just not entertain IT contractors. These specialist brokers are charging £1000 arrangement fee.

Now given
a) as a permanent employee my earnings cover my mortgage adequately
b) Our mortgage will reduce to a loan to value of about 30%

Will high street lenders give us a mortgage in these circumstances ?

Are there any people out there that have been in a similar situation? What was your experience?

Essentially , I want to avoid paying unnecessarily high "specialist" intermediary fees

kingstreet

Many brokers can deal with contractors using their daily rate and don't charge anything like £1,000.

If he wants to base income on self-employed earnings, such as net profits or director salary and dividends, he can use most if not all high street lenders.

It really depends on affordability via the different income routes.

ACG

As kingstreet says, there are various ways to do this. He does not necessarily need to look at contract mortgages, but possibly self employed mortgage. With 10 years accounts, assuming you are not looking to stretch income multiples I see no major problems.

If your income alone is enough, then you could even do a joint mortgage and put his income down as £0.

It will all come down to the numbers, but nothing you have said makes me think high street rates are not an option.