Getting a loan whilst on benefits
Work on a contractual basis? Struggling to get a home loan approved because you do not have a fixed income? These days, banks are reluctant to lend to those who do contract work, although they often get better salaries and earn higher incomes. Fortunately, there are mortgage brokers available to help you find the best possible lender to make sure you get approved for your loan without any hassles.
Typical contractors are those who work as PAYG contractors, self-employed contractors or subcontractors. Companies often choose to outsource workers on a contractual basis during periods of preoccupation or sometimes to replace a permanent employee who has taken a temporary leave.
- PAYG contractors are hired by agencies on a short-term or long-term basis. They bare similar to ordinary employees in getting a loan whilst on benefits. Companies will often pay the tax on behalf of the contractors
- Self-employed contractors working for themselves and not for the company. They handle all their business expenses. Pay their own wages and taxes
Those who work on a contractural basis find it difficult to get home loans because of their volatile financial situation. Banks see contractual work as casual, and if an individual is reaching UK benefits from the government to survive, it is difficult to receive a loan. There are bad credit loan options if you receive UK benefits, you can apply for a bad credit loan application through a direct online lender. Just because you receive income benefits to survive does not mean you cannot have financial assistance.
A large number of people in the UK receive benefits from the government/state and use this as their means to survive and function. However, an unexpected event or break/repair can leave an individual worried and needing help. Online loan lenders can provide instant cash to people with bad credit via there very bad credit loans.