Freelancer paid through PAYE-mortgage

(19 Posts)
chunkychicken1 Sun 11-Jun-17 11:11:13

Does anyone know if you're a freelancer paid through paye, are you considered 'employed' by mortgage companies? I.e do you not need to produce a number of years proof of earnings?

OP’s posts: |
rosesarered9 Sun 11-Jun-17 11:14:07

When I applied as a freelancer, I had to produce 3 years' worth of HMRC tax records. That's assuming you're self-employed.

daisychain01 Sun 11-Jun-17 11:26:00

I'm a bit confused by your statement - if you're a freelancer, surely you aren't in a PAYE system? So you have to prove earnings through your HMRC official records where it shows your income and tax paid. You have to prove income somehow so the lender knows you have the ability to service the debt.

SerfTerf Sun 11-Jun-17 11:28:21

I know DH did it both ways before we met. (Assuming you mean you're a freelancer overall, but that overall work pattern frequently compromises short term contracts as well as invoiced work sometimes?)

junglebookisthebest Sun 11-Jun-17 11:38:38

I'm a freelancer that pays myself through paye, but just a small wage. My broker found that the best deals for me were mortgages for the self employed where i had to provide 3 years of accounts rather than applying for 'employee' mortgages based on my 'wage'.

SerfTerf Sun 11-Jun-17 12:06:00

Oh, you mean your a company director?

What DO you mean? smile

Probably your best bet is to get a good mortgage broker and plonk the problem in front of them. They'll know all the lending criteria backwards and which way to present it to any given lender.

SerfTerf Sun 11-Jun-17 12:06:14


Badbadbunny Sun 11-Jun-17 12:10:29

If you're trading through your own limited company, you're legally an employee, not self employed.

You're only "legally" self employed if you're a sole trader or in a partnership.

Some mortgage companies don't follow the legal position though (and don't understand the difference either) - that's why it's wise to use a mortgage broker rather than go direct as they're more likely to understand the legalities and know which lenders will be easier to deal with.

daisychain01 Sun 11-Jun-17 13:41:32

I think you've just answered my query about PAYE bunny it wasn't clear how the OP was drawing their salary but that makes sense. Somehow they need to prove income and ability to repay, that's the key point. I think moneysupermarket may have done a survey of the best lenders to choose for self employed.

chunkychicken1 Sun 11-Jun-17 13:46:45

Thanks everyone, sorry I was a bit unclear!

So basically I will be on a 12 month contract on a day rate but will be paid through paye. I'm not sure if they will extrapolate my day rate to the equivalent salary, will see when they give me the contract...

So I'm not sure if I'm technically considered an employee rather than self-employed since I'll be on the payroll system?

OP’s posts: |
EyeHalveASpellingChequer Sun 11-Jun-17 13:53:28

Does your contract say that they are your employer or your client?

SerfTerf Sun 11-Jun-17 14:11:21

It sounds as though you should be an employee if it's 12 months full time, in which case your problem will be the shortness of your employment with them. Definitely one for a broker.

firsttimemama Sun 11-Jun-17 14:18:36

You only need one year of income evidence as a contractor with some Banks.

FemaleDilbert Sun 11-Jun-17 14:21:55

Is it PAYE from the company you work for, or an umbrella company?

chunkychicken1 Sun 11-Jun-17 14:51:23

It's paye from the Company I work for...

OP’s posts: |
rhinorocks Sun 11-Jun-17 15:44:45

You need 2 years full accounts and your HMRC SA302 tax calculation for 2 years- that shows your PAYE , any dividends and tax paid.

rhinorocks Sun 11-Jun-17 15:45:44

You don't sound self employed. You sound like an employee on a fixed term contract? Do you get holiday pay?

watchingitallagain Sun 11-Jun-17 15:50:30

My husband works like this. We used a company called Contractor Mortgages who have a slightly different was of underwriting your earnings. Have a look online.

flowery Sun 11-Jun-17 17:51:07

You are definitely not self-employed.

You are either an employee or a worker. If you work on a zero hours basis, have the flexibility to refuse offers of work, and your hours genuinely vary a lot, you're probably a worker.

If you work regular hours, you are an employee on a fixed term contract, and I would expect that to be reflected in your contract when it arrives.

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