Halifax Contractor Mortgages

Halifax contractor mortgage applications

Scouring the web looking for an up to date Halifax contractor mortgage forum for help and advice? You’ve come to the right place! If you are a contractor looking for a decent mortgage offer from a reliable lender, Halifax is a good choice. Halifax has an interesting history as it did great things to change the way contractor mortgages worked in the past. 

Previously, contractors applying for a mortgage had to prove their historical income, but that’s changed. In the beginning stages, Halifax had a lending policy that was only available to IT contractors. If a non-IT contractor wanted to make use of Halifax mortgages, they would have to present accounts from at least one year. Since 2013, any non-IT contractor can make use of their mortgage services. When compared to other contractor mortgage providers, Halifax is considered to have the most flexible lending policy. The Halifax day one contractor mortgage offer might be of particular interest to you if you have only started contracting, the only criteria required is if you have more than 6 months remaining on your contract then 1 year in the same industry is required, or if less than 6 months remaining on your contract, then you need to have been working continuously in the same industry for at least 1 year, with gaps of no more than 6 weeks in between employments.  

Halifax Contractor Mortgages

Can I get a Halifax IT contractor mortgage if I am self-employed or a contractor either through my limited company or PAYE through a umbrella company?

Yes, freelance contract workers can certainly get a Halifax self-employed mortgage! Halifax is a High Street lender willing to accept and consider applications from contractors whether they are on tehir first contract or a veteran contractor. The company accepts both day rate contractor and hourly rate contractor applications. Freelancers and independent professionals are also very welcome to apply for a mortgage with Halifax, limited company contractor, self employed contractor or via an umbrella company. 

At Contractor Mortgages Direct, we provide helpful advice and guidance that makes the process of applying for a mortgage with Halifax criteria even simpler. This Halifax contractor mortgage review aims to help ease the stress of trying to find a mortgage. The team at Contractor Mortgages Direct has a good relationship with Halifax. We have contacts to call on and liaise with about the specific requirements for a speedy, hassle-free application. With our help, the underwriting process is seamless ensuring your application fits the lenders policy and criteria.

Construction Industry Scheme (CIS) contractors are also welcome to apply for a contractor mortgage with Halifax. While Halifax will consider individuals who operate under this scheme, the application must meet all the requirements. The key to a successful application is to ensure that you don’t miss any weeks of work and have a record of consistent pay in the 13 weeks preceding your application. Halifax will use these figures to calculate your average earnings. Any time off in that 13-week period will cause a drop in your average earning amount and thus limit your borrowing power.

Recently due to the IR35 changes, contractors who were operting through their umbrella company are now operating through a payroll solution via a umbrella company, we are well placed to help you through your mortgage  application to ensure you are successful.

Whether you are a contractor operating through your limited company or through a payroll umbrella, you are able to apply for a mortgage application to Halifax. The company will view and consider your application based on merit. To ensure the best possible chances of a positive outcome, trust your application to a Contractor Mortgages Direct broker.

Halifax mortgage criteria for contractors and self employed individuals

Many contractors might think that they need a lengthy contracting history or a long term remaining on their contract to get a mortgage with Halifax. In fact, Halifax is a favourite choice for Day 1 contractors. That means that you don’t need to prove the history of your contracting. Our team has a very special relationship with their senior underwriters to ensure that your application is favourably considered and fast-tracked too.

One of the reasons so many contractors choose Halifax is that they accept applications from contractors with as little as just a 5% deposit. This means that they can lend you up to 95% LTV. That’s 95% of the property value! 

Halifax imposes no minimum daily rate for IT contractors. Even if you are on a daily rate of just £100, your application will be considered. If you are a non-IT contractor, their contractor policy dictates that you will need to meet the minimum daily rate requirement of £312.50 in order for your application to be accepted. 

Contractor mortgage: 4-6 weeks contract requirements for self employed mortgage Halifax

Another interesting fact is that Halifax accepts applications from day rate contractors who are on their very first day of a contract and have been a permanent employee on a PAYE basis. The only stipulation is that you can prove you have worked in a similar role for the previous two years. You will also need to show that you have a decent amount of time remaining on your contract. Four weeks is the standard time requested as they understand contracts are short-term. If you have less than four weeks remaining on your contract, you could be asked for proof of an extension or a new contract that you will be moving on to next, best to talk to us and we will be able to get you clarity.

Something to be aware of is that Halifax does not like to see gaps in your employment history. They are not unreasonable about this – holidays and a few weeks off is not a major concern – but if you have gaps of several months at a time in a 12-month period, you may have to consider making an application with one of our other contractor-friendly lenders. 

The key to a quick and successful application is having a good mortgage broker on your side. At Contractor Mortgages Direct, we can navigate the lender’s criteria and ensure that your application is carefully prepared and correctly submitted.

How Halifax calculates your gross contract value

Daily rate calculations for Halifax mortgage rates for self-employed people

Confused by the Halifax contractor mortgage multiplier? Let’s simplify it. Halifax will calculate your gross contract value by multiplying your daily rate by five and then multiplying that figure by 46 weeks. The average of your previous year won’t be used, as of 27th January 2021 Halifax have updated their policy and using the 46 week multiplier as opposed to the original 48 week, your day rate will be calculated in the following manner

Here's an example to consider (the daily rate is £350 per day):

  • £350 per day x 5 days x 46 weeks = £80,500 gross contract value.
  • Hourly rate calculations for Halifax contractor mortgage rates

If you are on an hourly rate of £42 per hour, the calculations work as follows:

  • £42 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value.

Benefits of using Contractor Mortgages Direct for your Halifax mortgage application

When making use of our mortgage services, we won’t keep you waiting around. We respond promptly to applications and provide instant one-on-one conversations at times that suit your schedule best – including weekends or after hours. 

You will find that our mortgage brokers are very dynamic in their approach to contractor mortgages and our main aim is to ensure that you get to own the dream property you have had your eye on.

With access and good relationships with key decision-makers at Halifax, we can ensure that your application is processed and get approved quickly. With our extensive experience, we strongly advise that applicants don’t attempt to prepare and submit their application alone. Without an in-depth understanding of how the process works, you could find your application is denied. Our team of specialist mortgage brokers can effectively navigate the pitfalls of the process and ensure that your application is perfectly packaged and presented. With our help, your application is primed for success.

Documents required for a Halifax contractor mortgage application

A contractor mortgage agreement in principle with Halifax is simple to acquire if you have the right documentation. Halifax has the following criteria in place for day rate contractors. We require these documents upfront for your Halifax contractor mortgage application, so that we can present your application to the Halifax contractor mortgage underwriter in its entirety and so that they can make a swift, positive decision.

  • Proof of ID, such as your passport or DVLA licence.
  • Proof of address, such as a utility bill or council tax bill.
  • The current contract with the terms and conditions in place – this must be dated and signed.
  • 3 months' worth of personal and business bank statements.
  • Proof of deposit (if you are purchasing a property).

We don’t require your limited company accounts or your tax calculations to process your application. If we require additional documents, our advisor will get in touch with you to let you know. 

A great deal of time and attention will be put into preparing your application to ensure its success. In doing so, we ensure that your credit profile is not tarnished in the process. 

Best of all, we won’t charge you for a conversation. In fact, we will freely advise and guide you so that your application is as simple and hassle-free for you as possible.

How much can I borrow? Use the Halifax mortgage calculator for self-employed contractors

If you are wondering how much you can borrow with Halifax, simply use our mortgage calculator below to get an approximate indication.

Call us or submit an enquiry online today for a free, no obligation chat.

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