How can someone who is not employed but works as a contractor get a mortgage in the UK? | The UK Mortgage Shop

How can someone who is not employed but works as a contractor get a mortgage in the UK?

Do I need to show employee payslips to a mortgage lender? What would a contractor show? Would National Insurance tax payments be checked?

Most UK lenders will treat you as ’self employed’. Not all insist on three years accounts but if you do have them it will increase your chances. Some will use an ‘average’, some will use the latest years figures to assess your borrowing capacity.

National Insurance payments are not checked, unless of course you have been taken to court for non payment !!
Dont forget to get a decent rate you will need at least a 15% deposit.
Suggest you speak to an Independent Mortgage Adviser and beware of any amateur answers.

Posted in uk mortgage | 5 Comments »

5 Responses

  1. old know all Says:
    February 7th, 2010 at 10:15 am

    Normally they’d want to see 3 years’ accounts.
    References :

  2. Kernow Lady Says:
    February 7th, 2010 at 10:39 am

    They require 3 years of accounts certified by an Accountant.. NI payments are not usually checked. If you have not been paying them that is illegal and you can be prosecuted for non payment.
    References :

  3. Cala B Says:
    February 7th, 2010 at 10:54 am

    You need to produce your annual accounts to show what you have earned over the last few years, just as the previous answers say. That’s the only proof of income that you have.
    References :

  4. daeve930 Says:
    February 7th, 2010 at 10:59 am

    In the US, we’ll count self-employment income if it’s been declared on at least the last 2 tax returns, and you actually make a profit from that business. It’s probably similar in the UK. A good idea would be to call a couple lenders and ask them what they need from you. It may not be the same for every lender.
    References :

  5. bluenose1949 Says:
    February 7th, 2010 at 11:31 am

    Most UK lenders will treat you as ’self employed’. Not all insist on three years accounts but if you do have them it will increase your chances. Some will use an ‘average’, some will use the latest years figures to assess your borrowing capacity.
    National Insurance payments are not checked, unless of course you have been taken to court for non payment !!
    Dont forget to get a decent rate you will need at least a 15% deposit.
    Suggest you speak to an Independent Mortgage Adviser and beware of any amateur answers.
    References :
    Independent Mortgage Adviser
    http://www.asfinancial.eu

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