I am going through a re-mortgage and there appear to be some issues.
Background:
I moved away from being employed by my ltd company as a consultant in March 2020. Since April 2020 I have been working via an umbrella company. To obtain my mortgage 2 years ago I provided two years of SA302’s and did the same for my wife who also worked for my company. My wife now has a different job with a different employer. As such her income has reduced by 10k per annum.
The issue:
The mortgage lender chosen by my broker won’t accept my pay slips from my umbrella company as proof of income as being employed even though I am taxed at source as a employee. Umbrella companies are all classed as self employed. The lender nstead wants my SA302’s from the last 2 years. They do not reflect my current income. I provide to my broker to be told they don’t reflect enough income to move ahead with my remortgage!
Why won’t the mortgage provider accept my payslips?
This was the response snipped from the lender:
‘So umbrella companies have to be classed as self-employed and we will therefore need 2 years SA302s despite the NI and tax being taken at source. “
Last edited by Stuno1; 12th March 2021 at 19:38.
As harsh as is sounds, my initial thought was that should your broker not have known about this in the first place?
Can the broker suggest an alternative lender?
I don’t know enough about the umbrella position, but you mention these are consider as self employed, on that basis should your SA302’s not match your payslips for that stream of income received?
If it’s just the end of the fixed rate period, it’s probably best to just switch to another product with your current provider.
They may not have the absolute cheapest deal but they’ll not be far off and it will save you a load of hassle.
My next SA302 will match my current income but as I made the change in April 2021 the in need to wait for that to be available and yes he should have been aware of my working circumstances in my opinion.Originally Posted by Captaincook
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I will be calling my current provider to speak about exactly this option.
You can probably go online and sort it out; it’s pretty hassle free these days.
This.
Issue is going on line won’t differentiate the lenders that won’t accept payslips from an umbrella company.
Most people who use umbrella companies are self employed which is why they’re probably asking for two years SA302s .
Perfectly logical .
Unless you want to borrow more switching products with your current lender is your best bet.
Thanks everyone. I’ll be speaking to a different broker who deals with people working via umbrella companies. I’ll also speak to my existing lender.
As a contractor through a Ltd company, I've used Contractor Mortgages made easy (CMME) to sort my last two mortgage changes. They have been brilliant both times. Not sure if they can assist for the Umbrella situation, but may be worth a call if you haven't tried them already.
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Thank you.
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