Whilst most people prefer the financial security of being employed, i.e. regular pay, paid holidays and other corporate benefits like life cover and pensions, it’s not for everybody. Some people like to enjoy the flexibility, and potentially higher earnings that being a “contract worker” can offer. In fact, in many cities and industries, contract working is now the norm rather than the exception.
One of the downsides of contracting working has always been getting a mortgage. This is an area we can help you with as we have a very good relationship with lenders who are happy to lend to contract workers and have a good understanding of what the requirements are. The following are factors that are taken into consideration:
· Total term of contract
· Term of contract remaining
· Day rate of pay
· Number of times contract renewed
· Number of years’ experience in particular industry
We can cater for all trading vehicles and payment structures for contractors, which often vary from industry to industry.
If you operate through your own limited company or a UK payroll umbrella, through us you can forget about being turned away by lenders who fail to understand how to assess your relevant earnings for lending purposes.
We understand that what is paid into your limited company may be significantly higher than you are drawing from your business via salary and dividends, meaning that your true mortgage affordability may not be accurately reflected by solely looking at these. However, you shouldn’t be punished for good tax or business planning.
You may have worked as a consultant through your own limited company for years, again we can help you by speaking to lenders who understand the structure and tax efficient benefits of taking a low salary and topping up income with dividend income.
You may be:
· IT Programmer/Consultant
· Oil/Gas Contractor
· Construction Contractor
· Social Work consultant
As well as helping you with your mortgage, we can also help you try and replicate some of the benefits you would often enjoy as an employee such as life cover and pensions paid for by your Limited Company as a legitimate business expense.
If you would like to know more about how we can help you with arranging your mortgage or your financial planning in general, please get in touch.