House Buying - People Who Contract

dranzer01

Did you guys find the process easy? 

Did you have any adverse history? What did you need to do to overcome this to actually get the property? i.e. raise a deposit of 30/40% etc

Were you able to get a mortgage as a contractor on a contract length of less than 12 months?

2bFrank

I am a contractor and managed to get a mortgage. There are specialist companies that will help you with this. the one I used was https://www.cmmemortgages.com/ however they was on the very expensive side, and there a quite a few of these companies about now though so definitely worth a google.

I got a mortgage on a 3 month contract (Outside IR35) without any issues, but I had been contracting for a year. The rules are slightly different inside IR35 and they want you to have a longer period of contract but there are ways round it. Only needed a 10% deposit as well.

How do you run your finances? are you through a limited company or an umbrella. If you are Limited, how many years of accounts do you have, if you have over 2 years of accounts, then you should be able to get a normal mortgage just like any self employed person. If umbrella then again its slightly different and would need a specialist for that.

if you are looking at a rough estimate of lend-ability, its 800x your day rate, so if you day rate is 500 a day, then you will be able to borrow 400,000 minus any debts/ affordability. This is a very rough estimate and could have changed (was a couple of years ago when I did it)

onylon

After speaking to our bank we got around the problem by putting my husband's income down as £0 even though he was working as a contractor. We still got multiple AIPs and eventually a mortgage on the basis of my salary.

Obviously won't work if you are single or need both incomes to meet affordability checks.

dimbo61

So complex case and a whole of market broker worth the Fee

ApplePie2019

I am a contractor and have just got a mortgage with Barclays - but I went through a broker and have been contracting for nearly 3 years. 

nekr0mantik

i contract also and had broker who is contractor specialist. no issues with barclays or halifax or natwest he said as long as you have 6 months or more left on current contract and been in same field for 2 years or more if your new to contracting. like 2bfrank said if your inside ir35 via umbrella then its different but I dont know exact details of what that needs to be.

brokers can be had for £300 which they charge at the end but much cheaper to shop around as cmme is like 1000 last time I checked.

dranzer01

Anyone here got a mortgage with a CCJ? (Ive read if you have a CCJ for something other than something serious like from a loan, it should be fine)?