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Any mortgage advisors or experts able to offer some thoughts on this scenario
Currently working as a contractor. Was hoping to move to a perm contract at the end of March with current client. They came back and offered me a fixed term contract until December on a normal PAYE basis, with role most likely being perm then once internal reshuffles are completed.
HR then got involved and said FTC was too much hassle and I should remain on a external contracting basis captured by IR35. Again, strong likelihood of role being made perm in December.
They've now come back and given me the choice of those two scenarios.
Key priority has been getting a mortgage, which wasn't possible under contracting scenario as I hadn't done it long enough. I know there are options but the interest rates were crap compared to normal mortgages.
I've done the sums, and even with the IR35 impact I'd be about £26k better off after tax, NI etc, between April and December on the contracting basis, vs taking the fixed term salaried role.
On the surface £26k seems like a no brainer, but it will delay the mortgage until at least next year and we're desperate to move. But I'm concerned about getting a mortgage with a fixed term contract.
TLDR; Does anyone have any experience of how easy or difficult it is to get a mortgage with a fixed term contract?
Waits for TJ to start greetin about your salary. 🤣
😂
Check with a financial advisor.
You can get a mortgage, it might be specialist and cost more for a year, but you can have your £26k and that house.
You can get a mortgage, it might be specialist and cost more for a year, but you can have your £26k and that house.
Good point, hadnt thought about that.
Where you moving to Bob?
Where you moving to Bob?
Staying southside most likely. No wish to move back to the shire! I sold my place when I got made redundant a couple of years ago and been in the missus flat since, which we've well outgrown.
You should still be able to get a mortgage on a fixed term contract. At my place of work (high st bank) you'll need to have at least 6 months remaining on the contract. Helps if you've got a big deposit. Helps if you've been contracting in that manner for a while. Helps if you've got 3/6 months bank stats showing in credit and all bills met.
Speak with a mortgage broker I would.
2 hour call with an adviser today. Turns out the contracting thing isn't really a problem. I had it in my head that it was nightmare based on 2 self employed mates failing to get a mortgage because they didnt have 3 years of accounts. Agreement in principle this week hopefully, then the real stress starts!
Good result! I've had no problem getting mortgages as a contractor. The key issues are usually day rate and length remaining on contract. I used a Glasgow-based broker last time. It sounds like you're sorted, but PM me if you need the details - she was very good.
Good news.
Now, my fee is a percentage of that £26k.... 😂
Maybe hold off a bit and see if BoE follows the Fed and cuts rates!
Superb Bob, finally booked in wi Tomasz again btw, happy days.