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.