Q. Can I still get a mortgage if I’m on my first contract and have only been trading for 8 months through my Limited company? A number of high street lenders have rejected my application and have told me that I need a minimum of 2-3 years accounts.
A. The simple answer to this question is YES but it does depend on the type of contracting work that you do. If you’re an IT Contractor, Halifax will accept contractors’ applications from their first contract. In other words, no need for trading history or accounts. As long as you have been working in IT for a minimum of two years prior to contracting, they will assess you based on your contract rate. I know that sounds too good to be true but that has been the case for many years. However, Non-IT contractors must earn at least £312.50 per day or £75k gross a year. Gross Pay is calculated as follows: (Daily Rate from contract x 5 x 48).
Buckingham Building Society needs a minimum contracting history of 6-months only, so we could take you to them too. Minimum day rate for non IT contractors is £175/day or £42k gross.
So it’s not all doom and gloom, but it’s important that you speak to a mortgage specialists that deals with contractors. To find out more, contact Freelancer Financials, they will be able to advise whether you qualify and what your next steps should be.
For further information visit the Contractor Mortgages page.