Contractor Mortgages for Umbrella Company Contractors

Umbrella Company Contractors getting Mortgages

Umbrella Company Contractors

Can specialist brokers get mortgages for umbrella company contractors?

Specialist contractor mortgages broker Tony Harris has been getting contractors mortgages for years without them having to produce three years worth of accounts as a high street bank would ask for. He can also get the offer based on their daily rate rather than a multiple of their Director’s salary.

He started with getting mortgages for IT Contractor more than ten years ago. Previously contractors found it difficult to get mortgages because they didn’t have regular monthly income like a permanent employee.

Mortgage Lender

However, Tony talked a lender into taking a chance and give contractors mortgages. The contractor paid up their mortgages monthly and didn’t default.

This gave Tony greater credibility with the lenders. So, he was able to get more and more mortgages for contractors. This has benefitted many, many contractors in the last 10 years.

However, can he also get specialist contractor mortgages for Umbrella Company contractors? We put it to him.

We asked “Tony, do you cater for Umbrella Company contractors as well as Limited Company contractors? What info do they have to supply and is easier or harder to get them mortgages?”

Contractors Mortgages

He replied “We use a multiple of contracts irrespective of whether you are a ltd company owner or if you contract through an umbrella company.

“The only difference is that additional evidence is needed to support your application by way of your payslips. It is no harder to secure a mortgage for umbrella company contractors, as long as you have a signed copy of your current contract”.

So it looks as if those specialist contractor mortgages are available to Umbrella Company contractors just as easily as they are to Limited Company contractors.

To get further information or to apply for a mortgage, fill in a form here and Tony will get back to you:- Contractor Mortgages

Contractor Mortgage Options for UK Contractors

Contractor Mortgage Options now

Contractor Mortgage Options

The Contractor Mortgage options for UK Contractors are twofold.

1.  You can step in to a high street bank and ask for a contractor mortgage or

2.  You can contact a specialist contractor mortgages broker

The first of the contractor mortgage options is what most contractors take – but it is madness.

The second of the two contractor mortgage options is the clever one – but only the contractors in-the-know are able to benefit from it.

High Street Bank mortgages for contractors

If you step into the high street bank, or building society, they will:-

a) Ask to see three years worth of accounts, meaning you will have to have been a contractor for at least 3.5 years

b)  Give you a quote based on your director’s salary. We all know that contractor prefer to keep that as low as possible. They want to take their money out in dividends and so maximise their returns.

You would have got a bigger offer if you had stayed in a permanent role.

Specialist Contractor Mortgage Brokers

So, what about the second of the contractor mortgage options?

That’s the sensible one.

A specialist contractor mortgages broker will:-

a)  Get you a quote on production of your contract without having to show three worth of accounts to get a contractor mortgage

b)  Get you a quote based on your day rate annualised.

Your Contractor Mortgage Quote

So, if you got £500 a day, that would be £2,500 a week.

They would multiply that by 48 to get your annual ‘salary’. That would make your annual salary £120,000 a year.

They would then multiply that by 4 to get your specialist contractor mortgage offer.

So they would offer you a contractor mortgage of £480,000.

As you would have to put down a deposit of a minimum of 5% you are talking about being able to buy a property worth more than half a million pounds.

This is the best of the contractor mortgage options.

Specialist Contractor Mortgage Broker

Tony Harris has been getting contractors specialist contractor mortgages for years now.

Because his client contractor have been paying up and not defaulting, he can often get contractors mortgage rates at better than current market rates.

He can even get contractors mortgage offers on the very first day of their first ever contract.

To find out more, or to apply, you should click on Specialist Contractor Mortgages