Accord Contractor Mortgages
Accord Contractor Mortgages, the intermediary division of Yorkshire Building Society, is a mortgage broker and consultant lender with an impressive range of products. Their offerings include offset products, free valuations, and cashback deals, making them an excellent choice for contractors.
Accord stands out as a contractor-friendly lender with a dynamic approach. Their underwriters are highly skilled and possess the authority to exercise discretion when assessing client circumstances.
This lender is willing to lend and takes an individualized view of each client’s situation.
Accord’s Policy Towards Contractors
Accord’s policy towards day rate contractors is as follows:
- A maximum of 46 weeks’ income will be considered from the current contract.
- There should be no more than an 8-week gap between contracts in the past 12 months.
- The minimum income requirement is £300 per day or £50,000 per annum.
- A minimum 12-month track record of contracts is necessary, with at least three months remaining on the current contract. If the remaining time is less than three months, a 2-year track record of contract work is required.
- Current and previous contracts covering the last 12 months should be provided.
- For PAYE/Umbrella Company/Sole Trader applicants: Submit the latest three payslips/invoices and the latest three months of personal bank statements.
- For Limited Company applicants: Provide the latest three months of business bank statements and the latest one month of personal bank statements.
Please note that umbrella company deductions must be taken into account when calculating affordability.
Accord calculates the gross contract value using the following method:
They typically multiply the day rate by five days and then by 46 weeks to determine the gross contract value.
They do not use the average of the previous year to establish an average day rate.
For example, if the day rate is £217 per day, the calculation would be £217 x 5 days x 46 weeks = £66,470 gross contract value. Similarly, if the hourly rate is £42, the calculation would be £42 x (number of hours stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value.
Income Limits
The table below outlines the maximum income amounts applicable for different types of transactions:
| Transaction Type | Maximum Income |
|---|---|
| PAYE / Umbrella Company | £250,000 |
| Limited Company (with 25% shareholding) | £500,000 |
| Limited Company (with 10% shareholding) | £300,000 |
Tailored Solutions for Contractors
Accord Contractor Mortgages offers tailored solutions to meet the unique needs of contractors. Contact us today to explore your options and receive personalized assistance.
Documentation Requirements
To facilitate your application, we kindly request the following documentation:
- Proof of identity, such as a valid Passport or DVLA License.
- Proof of address can be provided through a utility bill or council tax bill.
- Copies of your current and previous contracts spanning the last 12 months, including signed and dated Terms and Conditions.
- An up-to-date CV that highlights your outstanding work track record.
- Three months’ worth of personal and business bank statements.
- If you are purchasing a property, please provide proof of your deposit.
