clydesdale contractor mortgage

Clydesdale is a reputable lender known for its willingness to consider mortgage applications from both day rate and hourly rate contractors. Regardless of whether a contractor operates through a limited company or a payroll umbrella, Clydesdale is open to reviewing their application.

Clydesdale is distinguished for its flexible lending approach, often applying manual underwriting processes. This means they are sometimes able to make exceptions in certain cases.

Clydesdale’s Criteria for Day Rate Contractors:

  1. Contracting Experience: Clydesdale requires a minimum of 24 months of contracting experience for applicants.
  2. Open to All Contractors: Applications from contractors across various fields are considered.
  3. Minimum Contract Value: Unlike other contractor-friendly lenders, Clydesdale accepts applications with a minimum contract value of £50,000, which corresponds to a minimum daily rate of £217.50.
  4. Remaining Contract Duration: Clydesdale expects at least four weeks remaining on a contractor’s current contract. They understand the short-term nature of contracts and do not demand a lengthy remaining duration. For contracts with less than four weeks left, an extension or a new contract might be required.
  5. Employment Gaps: Clydesdale prefers a continuous work history over the previous 24 months, allowing for up to six weeks between contracts. Short breaks, like holidays, are considered acceptable.
  6. Contract Value Calculation: Clydesdale calculates the average contract value over the previous 12 months, not just the current contract value. They typically multiply the day rate by five (for a working week), then by 46 weeks to ascertain the gross contract value. The average daily rate from the previous year is not used in these calculations.

Example Calculations:

  • Day Rate: £350 per day x 5 days x 46 weeks = £80,500 gross contract value.
  • Hourly Rate: £42 per hour x (stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value.

Application Requirements:

  • Proof of ID (such as a Passport or DVLA Licence).
  • Proof of Address (such as a Utility Bill and Council Tax Bill).
  • Current Contract with Terms and Conditions, signed and dated.
  • Previous Contract to evidence a 12-month contracting history.
  • Clydesdale Declaration, Direct Debit Mandate, and Assets and Liabilities Statements.
  • An up-to-date CV demonstrating a strong track record.
  • Three months of personal and business bank statements.
  • For property purchases, proof of deposit or a gifted deposit letter, along with the template we provide if needed.

Providing all necessary documentation upfront streamlines the process and enables us to present your application to Clydesdale’s contractor mortgage underwriters effectively, ensuring a prompt and favourable decision.



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