Paying yourself as a contractor through an umbrella company can add further complications to your mortgage application. That’s because many mainstream lenders don’t understand how umbrella companies are used to manage a contractor’s income.
When you work under an umbrella company, you’re essentially employed by them and they act as a go-between yourself and your client. The umbrella company is paid by the client and the company then pays you.
Using an umbrella company can make things difficult - especially when you’re paid at the statutory rate and your earnings are then topped up with bonuses or commission. In this case, it’s important to work with a specialist advisor who understands the complexities of contracting, your specific situation and contractor type so they can identify the lender who is right for you. Make an enquiry to speak to a specialist contracting mortgage advisor.