Financial Services for Contractors

Planning your personal finances as a contractor

Contracting offers many opportunities in terms of earnings potential and flexibility but also potential financial pitfalls. You’ll no longer have access to a company employee benefits package and optimising your earnings and savings can be more complex when you’re a contractor. When it comes to mortgages, you won’t necessarily ‘fit’ the lenders’ standard criteria which can make it hard to find a good deal.

It’s important to take specialist advice on how to manage and plan your personal finances as well as those of your business. Once your accountant has advised you on how to take the most tax-efficient blend of salary and dividends out of your company, how do you make the most of your ‘personal’ money? Most contractor accountants will advise you to speak to a financial advisor, but some, like Intouch can offer a specialist service to their contracting clients

Intouch clients get all the financial support they need to overcome the specific challenges facing contractors. That’s because as part of the wider Brookson Group, we offer our clients access to expert financial advice and products that have been designed with the contractor in mind.

 

Specialist contractor financial advice

Brookson Financial have been offering expert advice and support for contractors and self-employed professionals for over 20 years, developing a deep understanding of how independent professionals work and what their financial needs are.

They are a specialist team of Financial Advisers that pride themselves in understanding the unique opportunities and challenges self-employment brings. As an Intouch client, you are able to access this specially designed range of contractor financial advice and services:

  • Competitive, contractor-specific mortgages
  • Pension advice
  • ISAs
  • Retirement Advice & Review
  • Investment & Saving
  • Retirement Forecasting and Planning
  • Illness & Life Cover
  • Business Insurance

Free Financial Health Check

The foundation of sound advice is a clear picture of your personal and corporate position combined with an understanding of your short, medium and long-term objectives. That’s why every Intouch client is entitled to a free Financial Health Check. Following a short phone call, you’ll receive a personalised report covering your current and future financial well-being and highlighting any areas of need.

Join Intouch Accounting, get so much more

Whether you’re looking to switch accountants or just starting out in contracting, with Intouch you get everything you need to run your Limited Company from an accounting and tax point of view for a fixed monthly fee. Your dedicated Contractor Accountant will handle everything for you, helping to maximise your income, while staying on the right side of the tax man. With unlimited IR35 advice and reviews and of cours access to contractor-specific financial services products, you’ll have everything you need for your contracting life.

So get in touch today

 

You might also like:

Contractor advice – mortgages made easy

How to get started as a contractor – infographic

How to switch to intouch – infographic

 

 

This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.

Contractor advice: mortgages made easy

Unless you’re an expert in the area, the world of mortgages can seem like a minefield. With so many providers, terms, rates and industry jargon to get your head around, identifying the best deal for your needs doesn’t come easy.

Things can get a little more perplexing if you’re a contractor. Being self-employed brings with it great freedom and flexibility, but also some uncertainty – and mortgages fall under this bracket.

Buying a property should be an exciting experience and as stress-free as possible. We hope reading this guide will help you in the process.

 

Why is it difficult for contractors to secure a mortgage?

Working as a contractor, your income is likely to vary from month to month. It’s this inconsistency that rings alarm bells with some providers, who factor it in when calculating your ability to sustain mortgage payments.

As a Ltd Company contractor, it’s often more tax efficient to pay yourself a low salary and top it up using dividends, but this can also lead to issues securing a mortgage. A provider, for instance, may not take into account retained profit you already have in your contracting business – profit that proves you could afford a mortgage.

Of course, there are other factors that may see a mortgage application denied – poor credit history, career gaps and undisclosed credit are among these.

Essentially, when your salary isn’t fixed, providers consider it riskier to lend you money. This one-size-fits-all approach certainly doesn’t fall in a contractor’s favour, and it can seem extremely unfair.

Contractors also stand a high chance of being turned down for a mortgage even if they personally approach their own bank, which will only assess their earnings, and often conclude that they have failed the so-called affordability test.

 

How can contractors strengthen their application?

There are a number of things contractors can do to appear more ‘lendable’ to mortgage companies, but they’re not always practical or guaranteed to be successful. Some of these include:

  • Saving up a larger deposit, which from a provider’s perspective lowers ‘perceived risk’
  • Improving your credit score before you start house hunting
  • Obtaining evidence of ongoing agreements with companies to prove guaranteed future work, as well as renewed contracts
  • Limiting time off in the run up to buying a home, as providers may scrutinise you for being out of work for long periods

 

So, what’s the solution?

It may be more difficult to secure a mortgage as a contractor, but it’s certainly not impossible. And actually, with more and more people choosing to go it alone and become self-employed, there has been an increase in the number of bespoke mortgage deals tailored specifically to contractors and their unique needs.

For specialist mortgage deals, you need to turn to a specialist provider, such as Brookson Financial.

Brookson Financial’s in-depth knowledge of the contractor market has enabled them to work with lenders to develop unique products which take into account the distinct ways contractors work and earn money.

The company works with carefully-selected high street lenders to offer unique deals to people like you. You would be assigned your own, personal Mortgage Advisor, who would be responsible for liaising with lenders, estate agents and solicitors on your behalf to save you time. After all, we all know how precious time is when you’ve got your own business to run.

 

From one personal advisor to the next, if you’re looking to switch accountants or haven’t long started out in contracting, with Intouch, you’ll be paired with your own, dedicated Contractor Accountant. It’s their job to help your business run smoothly by taking control of time-consuming accounting tasks you would rather do without, while making sure that you stay on the right side of the tax man.

To find out about any of these services, call us on 01202 375879.

 

This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.