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 2 years’ experience in the same field of work (as evidenced by the applicants CV or 2 years contracts).
- Minimum of 12 months contract history.
- Copy of current contract (where less than 3 months remain on the current contract a copy of the next contract/confirmation letter must be provided).
- Copy of 1 months personal or 1-months 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 daily rate must be entered as earned income on e-mortgages (in the ‘Contractor Income’ field).
Where there are gaps of more than 4 weeks in the employment history in the last 12 months the income calculation will be pro-rated (e.g. for an 8 week gap the calculation used will be daily contract rate x5 x 38 weeks).
For Locum medical professionals (including bank nurses), Supply Teachers and applicants on a Zero Hours Contract we will require the following:
- Minimum 12 months experience in the same field
- Copy of current contract (where available)
- Latest month’s bank statement
- Latest month’s payslip/invoice
- Latest P60.
To calculate income, we will use the lower of the 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 3 months remaining on the current contract a copy of next contract/confirmation letter must also be provided).
- Latest month's bank statement.
- Latest month's payslip/invoice.
Income will be calculated on the contract income and backed up by the latest payslip.
For Construction Industry Scheme (CIS) Workers we will require the following:
- 1 year’s summary of payments from either employer(s) or accountant and 1 month’s bank statement showing the income.
Or
- Latest years SA302 with 1 month’s bank statement evidencing the payments.
To calculate income we will use a 12 month gross average (minus materials), or the net figure from the SA302.
Please note 12 months’ worth of weekly remittance slips will not be accepted as evidence of income.