Switching Mortgage Provider as a Contractor

[Scoops]

Hi All,

Interested to understand if anyone has successfully switched mortgage providers as a contractor.

My wife is a full time employee while I've been contracting in the IT space since last July - does the switch to contracting rule out some/all lenders?

Thanks!

 

[time to plan]

Firstly, are you a proprietary director or a sole trader or working via an umbrella?

Assuming a proprietary director or a sole trader, you will need 2 or 3 years of accounts (depending on the lender), which you don't have.

I was in your exact position 5 years ago and found that a Bank of Ireland 'Mobile Mortgage Advisor' was able to 'make the case' for me to get an exception for the need for any accounts. It will help significantly if you have a long contract, or even a letter from the client indicating that you have a long pipeline of work.

Let us know how you get on.


Alternatively, is your wife's salary sufficient to cover the mortgage without taking your income into consideration>

 

[Scoops]

I'm working via any umbrella.

I could probably get a letter from the client as there's a few years work ahead.

 

[time to plan]

I'm working via any umbrella.

I could probably get a letter from the client as there's a few years work ahead.

That sounds like you're a PAYE employee but a temporary employee (unless you're working via a 'Director's Umbrella' where you're a proprietary director - and if you're not then why not - it's much better from a taxation perspective but that is way off-topic).

I don't have experience of the umbrella / temporary PAYE employee scenario, but I would say same situation applies. I would talk to a BoI Mobile Mortgage Manger, but also a good mortgage broker who may know other lenders who could help your specific situation.

Letter from client certainly can't hurt. Also, get your CV in order to show your continuity and years of experience in the industry.

You can only try!

 

[Scoops]

Thanks for the info.

I'm currently working via a 'Director's Umbrella', at least ive got that bit right

I'll start reaching out to brokers as you suggested, as I'm currently with BOI and they aren't offering very much in terms of rate drop

Cheers!

 

[time to plan]

Thanks for the info.

I'm currently working via a 'Director's Umbrella', at least ive got that bit right

I'll start reaching out to brokers as you suggested, as I'm currently with BOI and they aren't offering very much in terms of rate drop

Cheers!

So you're a proprietary director. I think you'll struggle outside of BOI but maybe things have changed in last 5 years. Worth asking a broker. Good luck.