An umbrella company mortgage is a mortgage product that is aimed at people who receive income through an umbrella company. There is a more limited market for this kind of product with other types of mortgages and many high street lenders will not attempt to offer a product for them.
Many umbrella company workers have their standard minimum wage then receive commission or bonuses based on funds generated. Others have more complicated arrangements and don’t have that basic salary element. But there are lenders who will consider these situations and include things like bonuses, allowances and commission when working out what it available.
There are a few benefits to using this kind of specialist mortgage provider:Contract value, not payslips
Specialist mortgage companies will look at the overall value of the contract rather than the actual payslips that you receive. As long as the contract is signed and consistent with the pay received and has been in force for a certain period of time (usually 6-12 months) they will consider this.Evidence of regular income
Another benefit is that specialist lenders will look at the history of earnings through the umbrella company. This is ideal if you don’t have your own accounts or evidence of income until the end of a tax year – umbrella companies can often provide income proof on a weekly or monthly basis.Borrow more than if self-employed
An umbrella company arrangement often means you can borrow more than you would for a standard self-employed mortgage
. That’s because the lenders look at the business as a whole rather than just your profit at the end of the year.