Contractors often debate whether operating through a limited company or umbrella structure improves mortgage chances. Here’s the breakdown:

Limited Company Pros:
✔ Higher loan amounts (lenders assess gross revenue)
✔ Tax efficiency boosts affordability
✔ Stronger for long-term contractors

Umbrella Pros:
✔ Simpler payslips (treated like permanent income)
✔ Ideal for short-term contracts

Case Study: A IT contractor secured a £400k mortgage via Contractor Mortgage Solutions by switching to a limited company.