AJRFulton Posted July 22, 2013 Share Posted July 22, 2013 I would assume we have a fair few contractors of sorts in here, be them offshore, outages, IT, whatever. Basically I decided to go limited company 18mths ago, as it is a fair bit more tax efficient. Anyway, I recently split up with my wife. Basically I am looking to purchase a small flat at around £50k (I don't need anything fancy for the next few years, as I'm working away a lot), and have around 25% of a deposit I can put down on that value. I calculate that a mortgage would be around £100pcm cheaper than renting, and given I work away from home at least 6mths a year, I don't want to be renting a flat I am only using half the time! Has anyone any advice on contractor mortgages, and what companies to use? High street lenders don't seem to understand how Limited Company freelancers work, which is frustrating! Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 22, 2013 Share Posted July 22, 2013 (edited) If you have 25% of the mortgage you will more than likely get a mortgage from most lenders. I own a business and turnt over £250,000 in my first year but my bank wouldn't entertain me untill I had 2 years accounts. Which is annoying as I take £4k a month wage so I know it can be frustrating. But Unless I had 25% of the deposit then they would "bend the rules" Just speak to your bank. Edited July 22, 2013 by Dave-350 Quote Link to comment Share on other sites More sharing options...
AJRFulton Posted July 22, 2013 Author Share Posted July 22, 2013 (edited) I have been, they aren't entertaining me without 2yrs accounts! I've never bought a house before, so a little naive as to how it works. Like yourself my effective 'take home' is around the £4k pcm mark on average, although varies a fair bit depending on the amount of hours I am working. I just find it a little absurd, that a man driving a new Z, with around £12k sitting there ready to be used for a deposit, cannot get a 10yr mortgage on a £40k-£50k flat. Although it's also absurd that I'm currently sleeping on a sofa bed in my parents house. I really don't want to rent though, as it's pissing money down the drain for a house I'll spend more time away from than in. Edited July 22, 2013 by Badgeronimous Quote Link to comment Share on other sites More sharing options...
Jay Posted July 22, 2013 Share Posted July 22, 2013 If you PM Sarnie on here, he will be able to offer you his services and advice no doubt. Quote Link to comment Share on other sites More sharing options...
martinmac Posted July 22, 2013 Share Posted July 22, 2013 +1. Sarnie knows what he is talking about and will be able to give you some great advice. Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 22, 2013 Share Posted July 22, 2013 I have been, they aren't entertaining me without 2yrs accounts! I've never bought a house before, so a little naive as to how it works. Like yourself my effective 'take home' is around the £4k pcm mark on average, although varies a fair bit depending on the amount of hours I am working. I just find it a little absurd, that a man driving a new Z, with around £12k sitting there ready to be used for a deposit, cannot get a 10yr mortgage on a £40k-£50k flat. Although it's also absurd that I'm currently sleeping on a sofa bed in my parents house. I really don't want to rent though, as it's pissing money down the drain for a house I'll spend more time away from than in. Everything you just said I can relate to! I just showed the Mrs your post and she agreed too, we are struggling to get a mortgage and renting pisses me off. Rent for me is £750 a month! Someone must be able to help you. Try moneysupermarket Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted July 22, 2013 Share Posted July 22, 2013 Sarnies helped me, top service and great guy. Knows the industry inside out and will bend over backwards to help a customer. Quote Link to comment Share on other sites More sharing options...
Ekona Posted July 22, 2013 Share Posted July 22, 2013 Just wait six months. No problems then. Quote Link to comment Share on other sites More sharing options...
Stutopia Posted July 22, 2013 Share Posted July 22, 2013 You don't have many options. I worked in consumer lending up to the crunch (it wasn't my fault) when self dec was a nice easy option. Like you, I'm now contracting but no lender would touch me until 2 years accounts. You can try Leeds Building Society who I *believe* will give you a shot with 1 year's accounts plus a projection. Only one I could find under two full years. Have a look here, bottom right box: http://www.leedsbuildingsociety.co.uk/introducers/pdf/self-employed-accounts-guidance.pdf Sadly I can't confirm if it is current, last I spoke to them, they would. Give them a bell, the lady I spoke to just confirmed my questions straight away, no holding! Good luck. Quote Link to comment Share on other sites More sharing options...
Ricey Posted July 22, 2013 Share Posted July 22, 2013 Just wait six months. No problems then. Pm the sandwich and this ^ Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 22, 2013 Share Posted July 22, 2013 Just wait six months. No problems then. 6 months rent is over £4000 which I'd rather put into a mortgage. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted July 22, 2013 Share Posted July 22, 2013 (edited) Did someone say mortgages?? Anyone that needs some help, drop me a mail; info@LT-Mortgages.com Liam Edited July 22, 2013 by Sarnie Quote Link to comment Share on other sites More sharing options...
Ekona Posted July 22, 2013 Share Posted July 22, 2013 Just wait six months. No problems then. 6 months rent is over £4000 which I'd rather put into a mortgage. That's only a month's wage for you though. Peanuts. Also, just rent somewhere crap for six months, not somewhere decent. As in a couple of hundred quid a month, not £600. Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 22, 2013 Share Posted July 22, 2013 Just wait six months. No problems then. 6 months rent is over £4000 which I'd rather put into a mortgage. That's only a month's wage for you though. Peanuts. Also, just rent somewhere crap for six months, not somewhere decent. As in a couple of hundred quid a month, not £600. It's certainly not peanuts. And I have a child and a wife, we need a house and you can't rent a house for much less than £750 PCM. Anyway, Sarnie might be able to actually help. Quote Link to comment Share on other sites More sharing options...
AJRFulton Posted July 22, 2013 Author Share Posted July 22, 2013 (edited) Wait another +12mths I'm afraid. Second year accounts aren't due until early 2015 I believe, I haven't even posted my first year accounts yet, although due by the end of August. I don't really want to **** money down a drain renting for 12mths, when I may only actually live in the house for 3-6mths of that period, such is the nature of my job. Nor do I want to be a 30 something divorcee, living on a couple of pensioners sofa bed for the next 12mths either. I'm fortunate enough to be in a position where affordability is not a problem and deposit is not a problem. It is frustrating. Edited July 22, 2013 by Badgeronimous Quote Link to comment Share on other sites More sharing options...
Stutopia Posted July 22, 2013 Share Posted July 22, 2013 Did you check out the link I posted to Leeds? Says 1 year plus projection. Quote Link to comment Share on other sites More sharing options...
Ekona Posted July 23, 2013 Share Posted July 23, 2013 It's certainly not peanuts. And I have a child and a wife, we need a house and you can't rent a house for much less than £750 PCM. I agree £4K isn't peanuts, but it's only one month's wage. In that scheme of things, it is peanuts. Why a house? A 2 bed flat would do as a temp measure, surely? For six months before moving into a longer term property, I'd be happy to live pretty much anywhere if I could save a few quid. A roof, heating, hot and cold running water: Pretty much all you need. Quote Link to comment Share on other sites More sharing options...
SteveM Posted July 23, 2013 Share Posted July 23, 2013 are you using your own accountant or do you have what used to be termed an 'umbrella company' doing your accounts for you on your behalf? i know of a good company that works all your books for you that offers contractor mortgages and pensions... there are a lot of them out there. i have been a self employed contractor for many years now Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 23, 2013 Share Posted July 23, 2013 It's certainly not peanuts. And I have a child and a wife, we need a house and you can't rent a house for much less than £750 PCM. I agree £4K isn't peanuts, but it's only one month's wage. In that scheme of things, it is peanuts. Why a house? A 2 bed flat would do as a temp measure, surely? For six months before moving into a longer term property, I'd be happy to live pretty much anywhere if I could save a few quid. A roof, heating, hot and cold running water: Pretty much all you need. Try telling that to my Mrs! Flats don't really do it for me (We currently have a ground floor flat) we need a garden as my daughter loves being outside - Which is better for me as shes then not inside bugging me I just can not justify paying rent any longer no matter how much it is, its complete dead money and I would rather my money pay off my own mortgage. Swings and roundabouts I guess - I can see from a lenders point of view that they need to be able to make sure you can pay the money they lend you back. The only thing I like about our flat is that we have an underground compound for the Zed 1 Quote Link to comment Share on other sites More sharing options...
AliveBoy Posted July 23, 2013 Share Posted July 23, 2013 In the spirit of wage willy waving, here's the contents of my wallet. If you look really carefully you can see my two bits of string! Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 23, 2013 Share Posted July 23, 2013 In the spirit of wage willy waving, here's the contents of my wallet. If you look really carefully you can see my two bits of string! Haha Don't worry mine is just the same! Quote Link to comment Share on other sites More sharing options...
wizard Posted July 23, 2013 Share Posted July 23, 2013 This is a great topic! Try and leverage the network on this brilliant forum. Someone may be able to help you guys? Quote Link to comment Share on other sites More sharing options...
Ekona Posted July 23, 2013 Share Posted July 23, 2013 My moths, Trever and Geoff, take care of the shilling and sixpence in my wallet. Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted July 23, 2013 Share Posted July 23, 2013 In the spirit of wage willy waving, here's the contents of my wallet. If you look really carefully you can see my two bits of string! Don't worry hopefully like myself your willy is much bigger that your wallet 1 Quote Link to comment Share on other sites More sharing options...
Dave-350 Posted July 23, 2013 Share Posted July 23, 2013 In the spirit of wage willy waving, here's the contents of my wallet. If you look really carefully you can see my two bits of string! Don't worry hopefully like myself your willy is much bigger that your wallet And I am guessing your wife looks like Katie Perry. Quote Link to comment Share on other sites More sharing options...
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