Ryanair New Brookfield Contract= Mortgage Trouble??

[captain_rossco]

Attention all (UK) Brookfield Pilots operating for FR.

I have just been informed that the "Irish Tax Status" of all new UK Brookfield pilots operating for Ryanair means that despite decent earnings you have a very low chance of obtaining a UK mortgage.

Natwest private banking being an exception for pilots already with an account.

This discsussion has taken place over some weeks with various lenders and brokers.

Halifax actually laughed at the proposition of someone with a "Forced" Irish Ltd Company (for the sake of tax purposes), taking out a UK mortgage.

They also detailed that any UK citizen Re-mortgaging their existing property would come under the same scrutiny.

The Tax office have said that Brookfield guys by law, are quite entitled to set up UK Ltd companies but are not afforded this opportunity by Brookfield/Ryanair.

Some more food for thought and/or an opportunity for anyone who has overcome this hurdle to pitch in as appropriate.

Regards
CR

[bingofuel]

Perhaps these lenders realise the absurdity of the whole Brookfield system, and are aware of what being self employed really means?

[WallyWumpus]

Rossco,

You need the money for your damp timbers?

[hollingworthp]

Rosco - just pop yourself on the council housing list, get all nice and cosy with the asbo's down in Easton ;-)

[captain_rossco]

Good afternoon chaps! My moist wood aside it chucked up a few interesting points. Whilst we're all enjoying low taxation and the perks of an Ltd, down the line this is going to cause a shed load of trouble!
That is, unless we wish to rent for life whilst paying contributions to the most wasteful government in the known universe.

Food for thought, and yes chaps, i've got some issues with with wood. :ok::ok::ok:

Regards
CR

[potkettleblack]

Anytime you are a shareholder in a business and your income is derived from profits and/or dividends which are contingent on a number of factors then lots of difficult questions get asked by banks. For a start most retail bank workers like run of the mill PAYE customers. They are dim at best. Anything to do with a company makes them nervous.

For a start your accounts are unaudited which means they will probe them closer. Then assuming they understand what block hours are and how your revenue stream is generated then they will start asking probing questions like how can you prove that your block hours will be x amount next year and the one after etc etc. Then you will go and ask Brookfield or FR for a nice letter to provide some level of comfort and they will no doubt tell you to go get stuffed as they don't want you to in turn use that against them at a later date should your hours not get up to your and your banks expectations.

Your best bet will be to canvass your colleagues and hopefully you will come across a friendly bank manager somewhere in the UK that understands the ins and out of Brookfield.

[hollingworthp]

Previously I guess Self-Certification would have solved your problems - but that avenue will be (if not already) firmly closed for good due to dodgy advice from mortgage advisers, mentally deficient account holders or plain fraudulent activity.

[jasonjdr]

I think it was the mis-management of the financial institutions which caused them to over lend in the first place, which led to the withdrawal of the old 'self cert' mortgage rather than the fraudulent applicants. But thats another discussion.......

The problem you will have is that if you were forced to setup an Irish based Ltd company then your income is through Ireland and not the UK. Therefore the banks will generally not lend based on an income sourced from abroad (especially when self employed). There are those who will lend to individuals employed by large multinationals, who have been 'posted abroad' for temporary or definite periods. But the key point is "employed". Self employed (or director with a shareholding of more than 30% of the company) and you will struggle.

There are also a couple of lenders who will lend based on foreign income, but only a couple and they will want a min deposit of around 25%. Remember also that they will want to see 3yrs trading history and will take an average of the last 3yrs nett profit, to calculate how much you can borrow. Given that most want to keep nett profit low for tax reasons, then it also means that affordable mortgage, as far as the lender is concerned, will also be low (this situation was what 'self cert' was original designed for!).

If, however, you are Brookfield and setup your Ltd Co in UK then problem solved. plus a good broker should be able to get the lender to consider your contract pay based on your last 12 months flying hours (rather than average of nett profit). Thus giving you greater borrowing power. Lenders are used to dealing with contract workers and calculating income based on a contract rate, as long as there is a descent history of a year or more behind it (and thats what we are:))

Hope this helps.

From a former full time, now conscientious part time Mortgage Broker and IFA :8

P.S, 'Self Cert' is most definitely closed now. Absolutely nobody is offering it. There is something similar called 'Fast Track'. But dont let anyone convince you its 'Self Cert'. Because it ain`t!

[D O Guerrero]

Thanks Jason - v useful info.