IT Contractor - How To Get Mortgage

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camel

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Anyone out there have any experience obtaining a mortgage while self-employed, particularly in IT contracting?

I've been jumping through hoops for several months providing this documentation and that, and at the end of it all I've been offered around 220,000. I don't think that will buy a house anywhere in this country!

Are there particular banks that are more favourable towards the self-employed?
 
As an IT contractor we got a mortgage from the BOI. We provided one years accounts and a copy of a contract for the next six months. That was more or less it since we bank with them. We also wanted less than they were prepared to lend (based on the x' times your salary calculation) so we passed the stress test easily.

All in all, it was fairly straightforward...surprisingly so.
 
Assuming you're operating as a director of a Limited Company, what's your salary? (Not your turnover or contract rate; your declared salary from the company.) Any other loans? How long have you been contracting? How long have you been on this particular contract and how long does it last for? Is there a likelihood it will be extended? How long have you been in the IT sector generally? Any qualifications?

All of this information should be included in a well-packaged application. If you just provide a lender with the minimum amount of information they ask for, you'll get the stock response. If you beef up the application with background, you may get a more favourable response.
 
go through a broker...they are familiar with this type of stuff...makes the application process easier...I used REA and had only just started contracting....
 
"...minimum amount of information..."!
I've provided them with everything but the kitchen sink.
It was 'packaged' by a big broker so I presume no problem there.

At the moment I take out approx 4500 as income per month.
Do they no take into account actual company earnings (i.e. contract rate). Should I therefore withdraw the maximum possible per month from the account for a while?

No other loans, I tend to save for something (car etc.) if I want it.
I'm fact, the only loan I have ever had (apart from current mortgage) was in college in '97 of about 1500 pounds.
I have a house which I bought in 2004 for 260,000. Daft tells me it might be worth around 380,000.

I contracted in Australia several years ago but under my current limited company in Ireland I contracted in 2004/2005. Then I went back PAYE for 18 months. Now I'm contracting again (since 2006). So the accounts are not consistent. Currently on second consecutive 6 month contract with company (large financial services). Likely to be extended again.

Approx 9-10 years experience.

I have an MSc and a diploma in Project Management.

Lauren....I am going through REA!
...maybe its the banks tightening up?
 
I'd say the lenders are taking into account YOUR earnings and seeing the company as separate...Probably true to say that the lenders are a bit tighter now..If you want to PM me, I can give you the name of the guy I dealt with in REA. He might be able to help.
 
Would you not have a huge amount saved yourself to add to the 220? I suppose you donjt want to blow your own money on a house in this environment, makes sense - especially for someone as mobile as yourself. Bet with the banks money and if prices keep going south you could hit back to Australia. Personally I think we will see alot of this over the next few years, possibly by anyone not tied down with kids..
 
TTV. Unfortunately I don't have very much in savings. I've always been amazed by stories of people have huge savings. Fair played to them, I just don't know how its done. I have about 24000 from SSIA. And I have maybe another 10000 in shares and funds.

That still wouldn't buy me an outhouse in Dublin!
Thinking of moving down the country anyway, but of course the flip side of that is that the wages will be lower.

I have a baby. My partner only works part time so as to look after the little one. That's fine by me, I wouldn't have it any other way. And we live in Dublin. Believe me, my money doesn't stretch far enough.
 
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