Secured Loans

Proof of income is also difficult as providers need to see payslips to approve a loan or mortgage. For contractors that chose to work through a limited company this problem is exaceberated as those outside IR35 regulations set low salaries in order to provide larger dividends and minimise tax payments. For example, rather than seeing £90k, they won't recognise dividends as income and will only see £12k.

Of course, working through an umbrella can sometimes help as you are provided with regular payslips with actual salary rates (albeit maybe not a regular income).

Securing your loan against an asset can provide the answers, though as with a mortgage, you need to remember that if you don't keep up repayments that asset is at risk.

freelancesupermarket.com members have access to brokers who are experienced in dealing with contractors, a great help when you are looking for the right loan at a competitive rate.

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