Scottish Widows Contractor Mortgages

Are you a contractor in search of a mortgage lender that truly understands your unique needs? Scottish Widows is here to offer you exceptional mortgage solutions tailored to both day rate contractors and hourly rate contractors. Our commitment to flexibility and understanding sets us apart in the world of contractor mortgages.

Offset Mortgage Products: Your Path to Greater Flexibility

One of the standout features of Scottish Widows is our offering of offset mortgage products. These unique products come with a linked savings account, allowing you to choose how you want to benefit from it. You can use it to reduce your monthly mortgage payments or to balance your mortgage, depending on your preference. It’s an excellent option for contractors and freelancers seeking greater financial flexibility.

Comprehensive Contractor Assessment

At Scottish Widows, we welcome and evaluate applications from contractors, regardless of whether you operate through your limited company or a payroll umbrella. We understand that the world of contracting is diverse, and we’re here to cater to your specific circumstances.

Day Rate Contractors: Your Path to Homeownership

Our policy towards day rate contractors is designed to provide inclusivity and support:

IT Contractors

IT contractors have no minimum daily rate requirement with Scottish Widows. Even if your day rate is as low as £100, we will gladly accept your application. IT contractors and freelancers are highly favored by Scottish Widows.

Non-IT Contractors

For non-IT contractors, a minimum day rate of £500 is required to be eligible for consideration under our contractor policy.

First Contract Consideration

We are willing to consider day rate contractors even if it’s your first contract, provided you have been working in a similar role as a permanent employee on a PAYE basis for the previous two years.

Preference for Some Time Remaining

When applying, Scottish Widows prefers to see some time remaining on your current contract, ideally around four weeks. While lengthy time remaining is not necessary, we understand the short-term nature of contracts. If you have less than four weeks remaining, we may request an extension or a new contract that you will be transitioning to.

Continuous Employment History

Scottish Widows places emphasis on continuous employment history and discourages significant gaps. While taking holidays or a few weeks off is not an issue, if you have several months off within the preceding 12 months, it may be more suitable to consider other contractor-friendly lenders.

Gross Contract Value Calculation

Calculating your gross contract value with Scottish Widows is transparent and straightforward:

We typically multiply your day rate by 5 days and then by 48 weeks to determine the gross contract value.
Importantly, we do not use the average of the previous year to calculate the average day rate.
For example, whether you’re on a day rate or hourly rate:

£350 per day x 5 days x 46 weeks = £80,500 gross contract value
£42 per hour x (number of hours stipulated or 37.5 hours default) x 48 weeks = £72,450 gross contract value

Required Documentation

To facilitate your application process with us, we kindly request the following documentation:

Proof of Identity and Address

Proof of ID, such as Passport or DVLA Licence
Proof of Address, such as a Utility Bill or Council Tax Bill

Contract Documentation

Your current contract with the Terms and Conditions, signed and dated
Documentation highlighting a contract renewal, demonstrating your ongoing employability

Evidence of Your Work History

An up-to-date CV showcasing your excellent work track record

Financial Documentation

Personal and business bank statements for the past three months

Property Purchase Documentation (if applicable)

If you’re in the process of purchasing property, proof of deposit or a gifted deposit letter may be required. We provide you with the required template for this letter, ensuring a smooth process.
Having all the required information upfront streamlines our process and enables us to present your application to the Scottish Widows contractor mortgages department in a professional manner. This approach ensures a swift and positive decision, bringing you one step closer to achieving your homeownership goals.

Let Us Guide You

With our expertise and commitment to your success, there’s no need to take risks with your mortgage application. At Contractor Mortgage Solutions, we are contractor mortgage experts who handle your application with the utmost care. Contact us today to benefit from professional advice and secure your path to homeownership with Scottish Widows. Your dream home awaits.