Day Rate City Contractor Paid via an Umbrella Company Buying a Residential Property

The clients: Our clients were looking to arrange a mortgage of up to 70 per cent loan-to-value to purchase a new residential property. The case was not straightforward due to his income, as our client works as a day rate contractor in the City and is paid via an umbrella company. We therefore required a lender which would accept a fixed-term contract and payslips showing the client’s salary in the form of basic pay and commission payments. To further complicate matters, the client’s current contract is due to expire in October.Numerous lenders were sourced but this was a very specialist request and took a lot of research to identify a suitable lender.

Key requirements: – • A lender comfortable using the client’s fixed-term contract. • A lender comfortable with using payslips from an umbrella company. • Borrowing at up to 70% LTV. • Ability to add the lender’s arrangement fee to the mortgage.

After sourcing the mortgage market, we identified a lender who would agree to our client buying at 70% LTV, basing affordability on his fixed-term contract and payment via an umbrella company.

The application process: To support the mortgage application, the client supplied us with evidence of his fixed-term contract and income, as well as proof of identity. We were delighted to inform our client that the lender had issued a formal mortgage offer for the full amount requested.

Property value: £875,000 Loan amount: £614,499 LTV: 70% Rate: 1.1.9% fixed for two years Lender product fee: £1,999 added to the loan Monthly payment: £2,369.11