Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • droiderm
    • By droiderm 12th Jan 19, 6:31 PM
    • 713Posts
    • 278Thanks
    droiderm
    IT contractor mortgage
    • #1
    • 12th Jan 19, 6:31 PM
    IT contractor mortgage 12th Jan 19 at 6:31 PM
    Hi everybody,

    I am looking to get a mortgage this year, in around the summer.
    Being an IT contractor it adds some complication, along with some other history I have . I declared bankrupt in 2007 (fully discharged and not on my credit file). As part of that was a voluntary repossession. There was equity and felt it was a good move at the time (may be not in hindsight).

    I did secure a mortgage in 2013 with nationwide with the above issues fully declared.

    However, additional complications are I am now "self employed" and it will be a relocation a few hundred miles away.

    I have done research and have found some contractor friendlier lenders . Specifically leeds building society and halifax which I believe fit my situation.

    I have been an IT contractor since September 2017.

    The general concerns I have is my history above (no adverse credit since) and I am a contractor and relocating. I appreciate it's likely I will need to use a broker but any suggestions or advice would be appreciated.

    Edit

    We will have around 30 to 40 k for a deposit and possibly looking for 250k (at the upper end)
Page 1
    • csgohan4
    • By csgohan4 12th Jan 19, 6:40 PM
    • 5,401 Posts
    • 3,482 Thanks
    csgohan4
    • #2
    • 12th Jan 19, 6:40 PM
    • #2
    • 12th Jan 19, 6:40 PM
    you really need a broker due to your prev bankruptcy to ensure you get the right lender for you
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • 5557223
    • By 5557223 12th Jan 19, 7:19 PM
    • 42 Posts
    • 8 Thanks
    5557223
    • #3
    • 12th Jan 19, 7:19 PM
    • #3
    • 12th Jan 19, 7:19 PM
    Get a good IT contractor friendly broker (ideally fee free). There are a few but most won't deal with you unless you are earning at least 325 a day.
    • DavidT67
    • By DavidT67 12th Jan 19, 9:23 PM
    • 87 Posts
    • 41 Thanks
    DavidT67
    • #4
    • 12th Jan 19, 9:23 PM
    • #4
    • 12th Jan 19, 9:23 PM
    Halifax will want to see your last three SA302 Self Assessment tax statements and take your average annual income from those. Others may want three years accounts for your limited company or simply base affordability on your daily rate, (Length of contract and gaps are factored in. )
    • kingstreet
    • By kingstreet 13th Jan 19, 9:34 AM
    • 34,617 Posts
    • 18,828 Thanks
    kingstreet
    • #5
    • 13th Jan 19, 9:34 AM
    • #5
    • 13th Jan 19, 9:34 AM
    Halifax will want to see your last three SA302 Self Assessment tax statements and take your average annual income from those
    Originally posted by DavidT67
    Not the case.

    Halifax will work from gross contract value, as will others.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Gary123456790
    • By Gary123456790 14th Jan 19, 4:44 PM
    • 576 Posts
    • 366 Thanks
    Gary123456790
    • #6
    • 14th Jan 19, 4:44 PM
    • #6
    • 14th Jan 19, 4:44 PM
    I can recommend this broker https://www.cmmemortgages.com/

    My wife is an IT contractor with Ltd company, and we used the above successfully.
    • Silian
    • By Silian 14th Jan 19, 4:58 PM
    • 160 Posts
    • 292 Thanks
    Silian
    • #7
    • 14th Jan 19, 4:58 PM
    • #7
    • 14th Jan 19, 4:58 PM
    We recently got a mortgage from Halifax as IT contractors. I had less than 1 year accounts (and my partner less than 2) but as we both worked in IT beforehand they were happy with it. They also used our day rates (instead of the small salaries we pay ourselves) for our affordability.

    They only required:
    3 months business bank statements
    Signed contract
    3 months personal bank statements

    I can't comment on how the previous bancruptcy will impact things - best to go via a broker. You don't even necessarily need a contractor friendly broker (we used a normal one) - IT contractors are looked at favourably with some banks.
    • Guerillatoker
    • By Guerillatoker 15th Jan 19, 12:46 PM
    • 217 Posts
    • 197 Thanks
    Guerillatoker
    • #8
    • 15th Jan 19, 12:46 PM
    • #8
    • 15th Jan 19, 12:46 PM
    I am currently in a similar situation dealing with CMME who are often advertised by ContractorUK, though their fees seem to be expensive (995 on a first charge mortgage, I believe rates for second charge are bespoke). So far I have only heard/read good things and is the first Advisor to swiftly understand my tax situation (IR35).

    CMME are only interested in contract value, whereas most conventional lenders will complicate things by using accounts etc. In my situation (only 1 year accounts) that is much more preferable, but I don't know if that would be the same for someone who had 3+ years.

    However I will note that I have also been speaking to a local independent broker with much lower fees who has also been very helpful, just sound less hopeful than CMME. Unfortunately he has been away on a long weekend so I'm still awaiting his response having spoken to lenders.
    Last edited by Guerillatoker; 15-01-2019 at 12:49 PM.
    • sal_III
    • By sal_III 15th Jan 19, 12:54 PM
    • 767 Posts
    • 771 Thanks
    sal_III
    • #9
    • 15th Jan 19, 12:54 PM
    • #9
    • 15th Jan 19, 12:54 PM
    I'm and IT contractor and got a mortgage from Nationwide through a broker (500 fee) based on daily rate alone. No company accounts, just a copy of the current contract and 6m company bank statements. No averse history though. The whole process was online (phone and e-mail) so I was happy to pay the fee instead of losing a day pay, to attend a face to face appointment etc.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

308Posts Today

2,626Users online

Martin's Twitter
  • As normal I am signing off twitter for the weekend - to spend time with mini and Mrs MSE. Hope you have a wonderfu? https://t.co/FG3sRfkIgA

  • RT @LauraFrancis9: Top crew! We may film in the freeeeeeeezing cold every week, but this bunch make it fun. (And huge thanks as always to @?

  • Turns out this is all Google served. We've been in touch and it's shutting it down which should cut it on many webs? https://t.co/8OYeMjEu4n

  • Follow Martin