Employment Status and Mortgage Application

D

DubContract

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Hi, just wondering if anyone could comment on this.

I am an IT contractor for the past 2 years and for the first year I had a company look after my accounts, and I was classed by them as a Self-employed contractor, so did not get a P60 etc.

I have since changed to another accounts company who have setup a company for me, of which I am now classed as a full time permanent employee, unfortunately I am too late to get a P60 which would be needed by the mortgage broker.
All I can get is a letter stating my yearly earnings, but I am wondering if this will be enough to process the application?
 
If you can show consistent monthly income, over the time period, most banks should accept this as proof of income
 
I was in a similar position, and got a mortgage with a letter of current earnings (make sure it states that you're not in a probation period), and an accountants report for 2005 (when i was half self-employed, and half employee). If you're approaching lenders yourself, avoid going into too much detail about the contractor/employee situation you're in at the moment - state the facts "I am an employee, earning €X pa".
 
Thanks for the reply's.

Fortunately I would say the lender is understanding and has come across many "strange" applications were the employment status wasn't straightforward.

So hopefully at the end of the day all he would be interested in is giving us the mortgage! (I am the the secondary person on the application).
Cheers!
 
Was in a similar position (although my length of employment was much shorter) and I used REA who made the process completely painless for me...Would recommend them if you are having any push-back from lenders...
 
Just another quick question, during the first year of my contract i had an account with a firm who set me up under one of there umbrella companies, during that time i was considered Self-employed.
I since moved the handling of my accounts to another firm, and they say i am a full time employee with them(for the past 5months)
However the site/customer i am working for has not changed for the past 2 years.
For the sake of the mortgage application, should I list the customer who pays my wages as the employer?
 
should I list the customer who pays my wages as the employer?
Click to expand...

No - it just isn't true! There's no harm in saying that the end-user of your services has been X for 2 years, etc to give the impression of continuity. But you are an employee of an the umbrella company, and they pay your wages. The umbrella company is responsible for recovering the monies from the client, but your contract of employment, etc is with the umbrella company.
In any case, as the application progresses, the lender may ask to see the contract of employment.
 
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