Contracting + Mortgages = Trouble?

[saintscottofthenortham]

I am trying to buy my first house, I am an Electrician who works for an Electrical Contractor.

 

I seem to have hit a bit of a rough patch with my prospective lender due to the fact that my calculated earnings going by my "Contracted Hours" are nowhere near that of what my actual earnings are. My earnings have been consistent for a considerable time, which they can see, but they seem strung up by what my Contracted hours are, even though in 6 years I have worked a minimum of 10, usually 20 or 30 hours over that of which my contract states.

 

Wondering if anyone on here has had similar problems or can offer any advise for how I can go about this...?

[thesaint sfc]

Can't you buy it with one of your parents as a guarantor to pay your mortgage? Obviously you won't use them - but peace of mind for the lender. Bit depressing but that's the way it seems to be at the moment.

[Saint Keith]

I am trying to buy my first house, I am an Electrician who works for an Electrical Contractor.

 

I seem to have hit a bit of a rough patch with my prospective lender due to the fact that my calculated earnings going by my "Contracted Hours" are nowhere near that of what my actual earnings are. My earnings have been consistent for a considerable time, which they can see, but they seem strung up by what my Contracted hours are, even though in 6 years I have worked a minimum of 10, usually 20 or 30 hours over that of which my contract states.

 

Wondering if anyone on here has had similar problems or can offer any advise for how I can go about this...?

 

drop me pm. ive been contracting for 12 years, have got some good contacts for you. it can be hard getting amortgage, but their are some specialists who do this

[Channon's Sideburns]

I am trying to buy my first house, I am an Electrician who works for an Electrical Contractor.

 

I seem to have hit a bit of a rough patch with my prospective lender due to the fact that my calculated earnings going by my "Contracted Hours" are nowhere near that of what my actual earnings are. My earnings have been consistent for a considerable time, which they can see, but they seem strung up by what my Contracted hours are, even though in 6 years I have worked a minimum of 10, usually 20 or 30 hours over that of which my contract states.

 

Wondering if anyone on here has had similar problems or can offer any advise for how I can go about this...?

 

Have you applied directly to a particular lender or through a broker?

 

The reason I ask is that the lending policy between lenders can be hugely different.

 

If your employer could confirm to the lender your basic contracted hours, then it's then a case of assessing your payslips/P60 or your SA302's. A lot of lenders only take up to 50% of additional earnings that aren't guaranteed.

 

Say you earn £20k per annum and have averaged £5k overtime, then they may assess your income as £22,500. Obviously they will take into account any credit commitments you have and the level of your deposit.

 

The mortgage market is a different proposition to even a year ago - not as bad as the press tell everyone, lenders are being extremely cautious so you'll find it the same questions in most places.

 

PM me with any specific q's you have and I'll help where I can.

[saintscottofthenortham]

Cheers for the info guys. I have had a chat with our accountant and she is speaking to them to see how they want to go about it. Seems that something officially letterheaded by my company may be all they require, just to state that my overtime os a regular weekly occurrence.

 

I thank you muchly for your offers of help, dependent on what happens over the next 24 hours, you may well get a pm from me.

 

Scott

[ronnie radford's boots]

As above, drop me a PM if your accountant's tack isn't successful, as I'm an IFA and can advise on your options ;-)