Contract work and first time buyer

[SpeedMattersNot]

Hi,

Leaving university soon and it seems most jobs I am looking at offer contract work only, from 6-12 months. I've read many discussions about the implications of this when applying for mortgages.

Does anyone have any advice and/or experiences with the reality of this?

Thanks for any input,
SMN.

[Dan_M5]

You'll struggle, my mortgage company wanted the last 3 contract paper work I've had. Some request the company accounts. If your going via an umbrella you should be ok as it "looks" like your employed.

[Sarnie]

Dan_M5 said:

You'll struggle, my mortgage company wanted the last 3 contract paper work I've had. Some request the company accounts. If your going via an umbrella you should be ok as it "looks" like your employed.

I don't think thats the line of work the OP is referring to........sounds like he is talking about standard PAYE positions that are on Fixed Terms Eg a 12 month contract initially with the hope/intention to be taken on permanently after that? If so, getting a mortgage will be very difficult......lenders will lend against Fixed Term contracts, but where there is history of doing so......

[ecs]

Halifax and Nationwide both accept people on fixed term contracts. They both ask that you need have been in the line of work for a while and have 4 weeks left on your contract at completion. That's probably not what you want to hear if you're a graduate.

There are a few brokers out there who might be able to help you out, Contractor Mortgages Made Easy, AMS and Habito are ones I've had experience with. I ended up using Habito as they had a product from Halifax which no one else could beat (even Halifax themselves).

[Sarnie]

ecs said:

Halifax and Nationwide both accept people on fixed term contracts. They both ask that you need have been in the line of work for a while and have 4 weeks left on your contract at completion. That's probably not what you want to hear if you're a graduate.

There are a few brokers out there who might be able to help you out, Contractor Mortgages Made Easy, AMS and Habito are ones I've had experience with. I ended up using Habito as they had a product from Halifax which no one else could beat (even Halifax themselves).

Read my post above...........pretty sure he's not talking about day rate Contracts.......the OP is taking about fully PAYE roles (tax and NI deducted at source) but the employment is only for 12 months..................this would be classed as employed income................what you are referring to is Day Rate Contractors........which is self employed income (tax and NI paid by the Contractor to HMRC)...........

[Dan_M5]

Sarnie said:

Read my post above...........pretty sure he's not talking about day rate Contracts.......the OP is taking about fully PAYE roles (tax and NI deducted at source) but the employment is only for 12 months..................this would be classed as employed income................what you are referring to is Day Rate Contractors........which is self employed income (tax and NI paid by the Contractor to HMRC)...........

Can still be a day rate contractor going via an umbrella and thats classed as fully paye

[Sarnie]

Dan_M5 said:

Can still be a day rate contractor going via an umbrella and thats classed as fully paye

Not for mortgage companies it isn't...............just "looking" PAYE doesn't mean you are.........

[SpeedMattersNot]

Ok, so perhaps I need to clarify some things; It seems like I've got options depending on the job.

Self employed contractor, PAYE and the 'umbrella' position, which hasn't been explained.

[Dan_M5]

SpeedMattersNot said:

Ok, so perhaps I need to clarify some things; It seems like I've got options depending on the job.

Self employed contractor, PAYE and the 'umbrella' position, which hasn't been explained.

You'll find it very hard.