Posted on 2 May 2018
I am an interim director employed on a contract basis and occasionally work for multiple companies at the same time. How will lenders view my income?
Working on an interim or fixed term contract for multiple companies will not affect your ability to raise a mortgage, even if you work for multiple end clients.
Irrespective of how you get paid (agency, PSC or Umbrella Company) the lender will take your gross annualised contract rate as your “earned” income. This essentially means that your daily rate multiplied by the days per week you work, then multiplied by 48 weeks per year will be the income declared to the lender for affordability purposes. You can add additional client work to this amount using the same calculation provided that your contracts run for at least a month at a time.
Our online calculator will give you an idea of your borrowing limits based on the above (Borrowing Calculator).
Some lenders are also happy to help if this is your first interim/contract role provided you have a track record of work in your chosen field.
You might be interested in reading more about contractor mortgages, or the range of flexible contractor mortgages. Click here to find out more.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.