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
- 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
- Contractors who earn £50,000 or more must have 1 year’s contracting experience or 2 years’ experience in same the industry
- Contractors who earn under £50,000 must have 2 years’ contracting experience. There is no minimum income requirement
- The maximum LTV is 95%
- If there is less than 1 month remaining on the current contract, evidence of renewal must be held
- It is acceptable for a contractor to have a limited company providing they do not employ other contractors or have more than one contract. Offshore structures are not accepted
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 agency 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. For zero hour contracts we need a 2 year track record of that income type
- If the customer has not been in their current job for a year, then we can only use their income if it is consistent with the level received in their previous job
- Seasonal or temporary short term employment is not acceptable
Construction Industry Scheme (CIS)
We assess CIS income using our self employed policy.