A first-time buyer in the IT industry approached us via a personal recommendation. The client had recently left a job as a permanent employee to work on a self-employed basis as an IT contractor, he had a 6 month contract and was being paid a daily rate into his recently incorporated Ltd Company.
Many lenders would have an issue with this working arrangement. Firstly most lenders will require 2-3 years accounts to proceed on a self-employed basis. Therefore, we discussed with a lender who could work off the value of the contract, more specifically the daily rate. Furthermore, we ensured the lender did not require a history of working on a self employed basis and would be able to proceed based on the client’s history in the same line of work (whether or not this was on an employed or self employed basis).
As a whole of market mortgage broker and a specialist in working with IT contractors we knew the lenders who could consider this type of application.
We placed the mortgage with a high street lender and obtained a 2 year fixed rate of 1.78%. This deal included a cashback and the mortgage offer was issued within 2 weeks.