As a Contract employee are you worried about how to get a mortgage?
With some forward planning and good advice, we can make your mortgage journey a much more pleasant experience and hopefully a greater chance of a positive outcome. By giving yourself a very valuable five minutes and calling us at Moore Financial Consultants we can guide you in the right direction. We have many years of experience and when it comes to contractors getting mortgages its our experience that will make your journey a pleasant one.
The problem you face
The truth is that lenders may treat you differently. The typical criteria is that you have to be in full time permanent employment in order to get a mortgage. If you work on a contract basis working from one contract to the next it might be a little more difficult to get your mortgage approval. Hopefully with a little advice and forward planning you may avoid some of the typical obstacles that people encounter.
The key things you need to know if you work on a contract basis and are looking for a mortgage
As a contract employee you may work on a PAYE basis or a self employed basis. You may work on a recurring 6 or 12 month contract basis.
The fact that you are a contract workers shouldn’t be the issue but you do need to have the following:
- Ideally your contracts should be for a minimum of 12 mts in duration and you need to have proof that it is a recurring contract. This means that if the current job finishes that you are easily employable again.
- 3 years revenue Tax returns: Chapter 4 & Form 11 if you keep accounts. If not a P21 for the last 3 years showing your P21 income.
- Confirmation that your tax is all up to date
- Copy of your current Contract
- 6 mts business current accounts statements or personal account statements if you don’t have a separate business bank account.
- Details of any other lending you have and statements for same.
- CV style work history – noting qualifications, skills
- Prove that there is a demand for your skill and area of expertise
- Evidencing sustainability of income : Examples of salary’s within industry,
- Demand for skills within industry, comparable incomes/ vacancies currently on offer
Mortgage Tips for Contractors
- Don’t worry if you don’t have a full time permanent position, this isn’t possible if you are working on a contract basis. What is important however is to have a contract for at least 12 mts in duration and have some history in getting recurring contracts. There shouldn’t be big gaps in your employment history.
- Be organised. You’ll need copies of bank statements, contracts, accounts, payslips, tax returns, passport, proof of address, etc.
- Start saving and organising the documents you’ll need: it’ll save you a lot of time come application time.
- Don’t give up. If you don’t have the right documentation in place, then just bide your time for 6 or 12 months. Buying a house is a slow process. By the time you find the right house you’ll probably have all the documentation you need.
- Check out your credit rating with the Irish Credit Bureau (www.icb.ie). If you spot a mistake you can have it amended before applying for your mortgage.
- Reduce your personal debt and borrowings where possible. The less debt you have, the more you can borrow.
- You’ll need a deposit, but if you can show you have additional savings to cover your salary in quieter months this will help.
We have the experience to help you through the biggest purchase of your lifetime, be it a switcher, first time buyer or self-build. Talk to us today.
We are very experienced in helping people work through the red tape and get the result they want. We will work on a one to one basis with you and work out a roadmap for you to achieve your goal. You will have a dedicated member of our team committed to helping you get your mortgage. There are many providers, terms and rates available. We will work to ensure you get the solution that is right for you. That’s the benefit of working with an experience Financial Adviser, we can give you unbiased advice on what is the right for you.
With many years of experience there is no situation that we haven’t come across, let our experience help you.