Can you get a mortgage as an umbrella employee?

The benefits of using an umbrella company are well-known.

Work this way and you enjoy greater flexibility, increased earning potential and the freedom to choose projects that interest and challenge you. Alongside these perks, however, there are some so-called challenges, too. Umbrella company mortgages and mortgage eligibility are two such examples.

For many self-employed workers, the process of securing a mortgage is different than it is for full-time employees, and can be a little difficult to navigate – but it isn’t as challenging as you might think. In this article, we explain everything you need to know about mortgages for umbrella company employees, how to apply for them and where to find a suitable lender.

Can you get a mortgage working via an umbrella?

In short, yes. Don’t worry; mortgages for umbrella company employees are available from various providers. However, for traditional lenders, flexible working can sometimes result in irregular income, making it difficult for independent workers to secure a mortgage. This is changing though; the market is evolving, with specialist lenders ready to help the self-employed find a mortgage that works for them.

Umbrella mortgages explained

Umbrella company mortgages are no different from mortgages provided to permanent workers. Before you start applying for mortgages, though, it’s a good idea to work out how much you’ll need to borrow – you can find plenty of umbrella company mortgage calculators online to help you work this out – and then you’ll need to ensure you meet the eligibility criteria that your lender requires.

How are eligibility criteria determined?

While all borrowers look at the usual criteria – your age, credit history and income – when you’re looking for a mortgage, umbrella company employees may also be subject to additional checks and conditions.  For example, some lenders may require you to have six months or more of self-employed trading history. But these additional eligibility criteria will vary from lender to lender. Meeting these conditions proves that you can keep up with regular monthly repayments.

How to get ready to apply for a mortgage

Before you can apply for a mortgage as an umbrella company employee, there are a few things you’ll need to do. 

Firstly, you’ll want to get together your employment contract, payslips and bank statements, and other documents which prove your identity and illustrate your income and work status.

Next, you should check your credit reports. Doing so helps you to spot and correct any errors on your record. A healthy credit history is an indication that you’re a responsible borrower. Clearscore and Experian are two such companies that provide you your credit score for free.

Finally – you’ll want to find a specialist broker with experience securing mortgages for umbrella company employees.

Finding a lender

Fortunately, it’s easy to find a broker, who can find the right lender for you. A growing number of mortgage brokers are dedicated to helping independent workers secure mortgages in line with their earnings..

With you all the way

So, mortgages for umbrella company employees are broadly the same as mortgages for permanent employees. And while you may have to offer additional proof to a lender to demonstrate you’re capable of keeping up with monthly repayments, you shouldn’t have any issues securing a mortgage as an umbrella company contractor.

For more information about umbrella company mortgages, visit CMME, and for any queries about umbrella company working, please request a callback and one of our friendly experts will be in touch.