Whilst being an international contractor has many perks, including a higher take home pay it can also produce some unforeseen problems that may not necessarily affect your regular Joe in a permanent job. Among them is the ability to get a mortgage. However with more and more people deciding to become contractors institutions are having to rethink how they handle the situation of mortgages for temporary workers.
As a contractor it is often hard to prove income to a lender for a variety of reasons, i.e.
- Short term contracts, which can cause issues when asked to show that you have been in a role for a ‘substantial period’
- Lack of salary slips in cases where contractors are paid by dividends and/or payroll meaning they are self employed
- In absence of salary slips lenders will look for the last three years business accounts of the self-employed which contractors will not have
The problem comes from two main areas;
- When dealing with some trainee in a large high street branch that does not necessarily understand the profession and therefore only sees the problems when asking for standard paperwork relating to permanent income and salary evidence, and;
- Lenders traditional fears over contractors gaining extensions/new contracts.
Here at Chesterfield we have assisted many contractors in the past negate these problems and have standard paperwork in place which we can provide on demand to the bank to ensure a smoother process. We also have a good relationship with several banks and are able to assist with their understanding of the situation. For more information regarding this or any other contractor payroll related matter please do not hesitate to contact us.