Innovative Lending Policy for IT Contractors - 23.11.2010

Author: Jeni Browne Posted on: 23 November 2010

Many IT Contractors now work via a Limited Company or some form of offshore trust for tax reasons.  This can be problematic for them when applying for a mortgage, especially if the structure has been in place for less than two years. 

We have sourced a lender who, rather than focus on the company's accounts and length of trading, will instead look at the applicant's current contract and CV.  If the applicant has a track record of contract work, has had their contract with their current employer renewed, and the employer is happy to say that they cannot see any reason why the contract would not be renewed in the future, the lender will then take the daily pay rate, pro rata this to 46 weeks per year, and treat this figure as income.  This invariably works more favorably than looking at a directors' remuneration and dividend scenario.