Residential policy
Daily rate contractors
- We will lend to daily rate contractors who have a fixed rate of pay, work schedule and contract duration
- Income is calculated by the current contract multiplied by 46 weeks
- 95% LTV is available to contractors who earn £50,000 or more and have 1 year’s contracting experience and have had their contract renewed at least once
- 95% LTV is also available to contractors who earn under £50,000 if they have 2 years’ contracting experience and have had their contract renewed at least once
- 70% LTV is available to contractors with less than 1 year’s contracting experience if they earn over £50,000 and have a minimum of 2 years’ experience (employed or contracting) in same the industry
- The maximum gap between contracts is 6 weeks. If there is more than a 6 week gap, please contact us - we may still be able to help
- If there is less than 1 month remaining on the current contract, evidence of renewal must be held
- We usually need customers to have no more than one contract, and where there has been a significant pay increase in the most recent contract we may need further information
- If a customer has significant recurring expenditure items showing on their business bank statements please contact us before applying – it could mean our contractor assessment isn’t right for them or we may need to include the items in our expenditure assessment
IR35 and umbrella companies
- Contractors operating inside IR35 and/or use of a payroll services company (PAYE umbrella company) are accepted
- When reviewing payslips, we will deduct any statutory employer costs (including employer National Insurance contributions and Apprenticeship Levy) and any payroll service costs from the gross pay before multiplying by 46 weeks
Zero hour contracts, fixed term employment, and renewable term contracts
- These are all acceptable where the customer has a 2 year track record in the same line of work, whether on a permanent basis, or as a contractor
- Fixed term employment contracts are acceptable where the customer been in continuous employment for the past two years (whether on a permanent basis or as a contractor) and has at least 12 months remaining on the current contract
- Renewable term employment contracts are acceptable if they have a term of at least 6 months and have been renewed at least once
- Zero hour contracts are usually acceptable where the customer has a 2 year track record of this type of income in the same line of work, but scenarios can vary so it’s best to get in touch before applying
- Seasonal or temporary short term employment is not acceptable
Construction Industry Scheme (CIS)
We assess CIS income using our self employed policy.