Can Umbrella Company Contractors Get a Mortgage?

Can Umbrella Company Contractors Get a Mortgage?

Blog Article

If you’re a contractor working through an umbrella company, you might be wondering whether that affects your chances of getting a mortgage. The simple answer is yes—you absolutely can get a mortgage, but the process works a little differently.

Let’s take a look at how it all works for umbrella company contractors.

What Is an Umbrella Company Contractor?
An umbrella company acts as your employer for tax and payroll purposes, while you carry out contract work for end clients. You’re paid through PAYE (Pay As You Earn), and your umbrella company handles your:

Income tax

National Insurance

Pension contributions

So, even though you’re a contractor, your income may look more like that of a salaried employee.

How Lenders Assess Your Income
Because you’re paid via PAYE, many lenders will treat your income similarly to a regular employee’s. They’ll usually ask for:

Your last 3 months of payslips

Bank statements showing your net income

Possibly a P60 to verify annual income

However, some lenders may not fully understand how umbrella payments are structured (such as expenses and holiday pay), which is why a specialist broker is so valuable.

Challenges Umbrella Contractors Might Face
Some lenders may exclude bonus or commission income

If your contract history is short, they may question income stability

Your gross income may appear lower than a limited company contractor’s (since tax is already deducted)

Despite these factors, many umbrella contractors successfully secure competitive mortgage deals—especially with the right presentation of income.

Tips for Getting Approved
Use a mortgage broker familiar with umbrella contractors

Keep payslips and contracts well organised

Consider using a lender that specialises in contractor-friendly underwriting

Final Thoughts
Being paid through an umbrella company won’t prevent you from getting a mortgage—but it does mean you need to work with a lender that understands how umbrella payments work.

At Contractor Mortgage Solutions, we help umbrella contractors find the right lenders and get the mortgage they deserve—with clarity and confidence.