Clydesdale Contractor Mortgages
When it comes to contractors, Clydesdale Bank stands out as an excellent lender, offering tailored mortgage solutions to meet the unique needs of contractors. Whether you’re an experienced contractor or just starting out, Clydesdale Bank provides flexible options to help you secure the mortgage you need.
Contractor Eligibility
Clydesdale Bank welcomes loan applications from contractors with at least one year of industry experience. However, contractors earning less than £50,000 annually are required to have a minimum of two years of contracting history. For contractors with over one year of experience, contract renewals are essential, ensuring your eligibility.
Income Calculation
To determine your income, Clydesdale Bank multiplies your current contract day rate by five days a week and 46 weeks. If you have less than one year of experience, you may still qualify for a loan as long as your loan-to-value (LTV) ratio remains below 70%. Additionally, all contractors must have a minimum of two years of experience in the same industry, either as an employee or a contractor.
Documentation Requirements
To apply for a loan, you will need to provide specific documentation:
Current and previous contracts from the past 12 months.
Bank statements from the last three months, demonstrating the receipt of the full contract value.
For contractors with less than 12 months of experience, the P45 or P60 from their last employed position before contracting.
Original contract and renewal pages for contractors with renewed contracts from the same employer.
Contractors Inside IR35 or Using Payroll Services
Clydesdale Bank accepts contractors inside IR35 and those using payroll service (umbrella) companies. For payroll service company users, bank statements reflecting the full contract value, along with explanations for any deductions, are required. Two months’ payslips are needed for those paid via a payroll service company.
Fixed and Renewable Employment Contracts
Applicants with fixed or renewable employment contracts, such as teachers or lecturers, must provide a copy of their contract to meet Clydesdale Bank’s criteria. For fixed-term employment contracts, continuous employment for two years and a minimum of 12 months remaining on the current contract are required. Renewable-term employment contracts must have a minimum term of six months and must have been renewed at least once.
Document Packaging
To streamline your application, Clydesdale Bank requires the following documents:
Proof of ID (e.g., Passport or DVLA License).
Proof of Address (e.g., Utility Bill and Council Tax Bill).
Current Contract with signed and dated Terms and Conditions.
Previous Contract to evidence 12 months of contract history.
Clydesdale Declaration, Direct Debit Mandate, and Assets and Liabilities Statements.
An up-to-date CV showcasing your excellent work track record.
Three months of personal and business bank statements.
If you are purchasing, proof of deposit or a gifted deposit letter and related requirements (a template will be provided for the letter).
Providing all the necessary documents upfront ensures a smooth and efficient application process, allowing Clydesdale Bank to present your application to the contractor mortgages underwriter professionally. This leads to quicker and more favorable decisions.
Contact Us Today
If you have any questions or are ready to initiate the application process, don’t hesitate to contact us by phone or submit an online enquiry. Our team is here to assist you with a free, no-obligation, and informal chat, guiding you through the process of securing the right mortgage for your contractor needs.
