Our criteria
Please see below our requirements if your client operates within their chosen profession as a self-employed Contractor.
If your client is a Contractor on a day rate contract we will require the following:
- Minimum of two years’ experience in the same field of work (as evidenced by the applicants CV or two years contracts)
- Minimum of 12 months' contract history
- Copy of current contract (where less than three months remain on the current contract a copy of the next contract/confirmation letter must be provided)
- Copy of one months personal or one month's business bank statement showing contractor income and general expenditure.
To calculate income, we will use their daily contract rate x5 x 46 (weeks) irrespective of whether they are operating as a Sole Trader or through a Limited Company.
Operating through a Limited Company is only acceptable where the applicant is the sole shareholder, or the shareholding is split with a spouse/partner who is party to the mortgage application. If any other 3rd party is named on the Limited Company then this will result in the application being processed on a standard self-employed basis and the daily rate calculation will not be available. If the partner/spouse draws an income from the business this cannot be used for affordability along with day rate as this would be double counting.
The contract rate must be entered as earned income on e-mortgages (in the ‘Contractor Income’ field).
Where there are gaps of more than four weeks in the employment history in the last 12 months the income calculation will be pro-rated (e.g. for an eight week gap the calculation used will be daily contract rate x5 x 38 weeks).
For Locum Medical Professionals (including Bank Nurses and Dentists) we will require the following:
- Minimum 12 months’ experience in the same field
- Minimum latest 12 months’ contracting history
- Copy of current contract, if available, (where less than three months remain on the current contract a copy of the next contract/confirmation letter will also be required)
- Latest 12 months payslips/invoices OR 12 months summary of payments from employer (weekly payslips are not acceptable)
- Latest one months bank statement evidencing income and day to day expenditure
- For Dentists, any UDA (Unit of Dental Activity) deductions must be accounted for.
To calculate income, we will use an average of the 12 months gross income from the payslips/invoices or the employer summary.
For Supply Teachers, Agency workers and Zero Hours contracts we will require the following:
- Minimum 12 months’ experience in the same field
- Minimum latest 12 months’ contracting history
- Copy of current contract, if available, (where less than three months remain on the current contract a copy of the next contract/confirmation letter will also be required)
- Latest month's bank statement evidencing income and day to day expenditure
- Latest month's payslip/invoice
- Latest P60.
To calculate income, we will use the lower of the annualised year-to-date figure shown on the latest payslip or P60.
If your client is on a Fixed Term contract we will require the following:
- Minimum 12 months' experience in the same field (as evidenced by the Applicant’s CV)
- Copy of current contract (where there is less than three months remaining on the current contract a copy of next contract/confirmation letter must also be provided)
- Latest months bank statement evidencing income and day to day expenditure
- Latest month's payslip/invoice.
Income will be calculated on the contract income and backed up by the latest payslip/invoice.
For Construction Industry Scheme (CIS) Workers we will require the following:
- One year’s summary of up-to-date payments from either employer(s) or accountant and latest one full month's bank statement evidencing the income and expenditure.
Or
- Latest year's SA302 with latest one full month's bank statement evidencing the income and expenditure.
Or
- Latest 12 months' invoices/payslips and latest one full month's bank statement evidencing the income and expenditure
- Summary of monthly invoices to confirm gross, cost for materials (if applicable), tax and net.
To calculate income we will use a 12 month gross average (minus materials), or the annual net profit figure from the SA302.
Please note 12 months’ worth of weekly remittance slips will not be accepted as evidence of income.