Nationwide Contractor Mortgages is an esteemed High Street lender renowned for its receptivity to mortgage applications from both day rate and hourly rate contractors, irrespective of their income level.
Whether you are a contractor operating via your own limited company or a payroll umbrella, Nationwide will review and consider your application thoroughly.
Our mortgage brokers at Mortgage Knight possess extensive experience and will ensure that your application aligns perfectly with Nationwide’s criteria for contractor mortgages.
Submitting an application haphazardly through an inexperienced broker can lead to failure. It’s crucial not to bypass professional guidance in an attempt to go direct; our skilled brokers at Mortgage Knight can assist in securing some of the most competitive interest rates available with this lender.
Nationwide’s Policy for Day Rate Contractors:
- Contract Rates: Nationwide does not impose a minimum contract rate and welcomes applications from contractors in any profession, on any day or hourly rate.
- Contracting Experience: Contractors must have a minimum of one year’s experience in contracting for Nationwide to consider the application. Anything less is typically not acceptable.
- Remaining Contract Duration: Nationwide requires a minimum of four weeks remaining on your contract, understanding the short-term nature of such agreements. If your contract has less than four weeks remaining, Nationwide may request evidence of an upcoming extension or a new contract.
- Employment Gaps: Nationwide expects consistent work over the past 12 months, with acceptable breaks for holidays. Notably, Nationwide is quite lenient regarding employment gaps, allowing up to 12 weeks between contracts.
- Fixed Term Contract Requirement: Nationwide requires an end date on contracts to comply with their “fixed term contract” policy.
Calculation of Gross Contract Value by Nationwide:
Nationwide calculates gross contract value by multiplying the day rate by five (for a working week), then by 52 weeks, using 80% of this value for mortgage calculations. They do not consider the average of the previous year to determine the daily rate.
Examples:
- Day Rate: £350 x 5 days x 52 weeks x 0.80 = £72,800 gross contract value.
- Hourly Rate: £42 x (stipulated or 37.5 hours default) x 52 weeks x 0.80 = £65,520 gross contract value.
Application Requirements:
- Proof of ID (e.g., Passport or DVLA Licence).
- Proof of Address (e.g., Utility Bill or Council Tax Bill).
- Current Contract with Terms and Conditions (signed and dated).
- An up-to-date CV demonstrating a strong work record.
- Three months of personal and business bank statements.
- For property purchases, proof of deposit or a gifted deposit letter, along with the necessary template provided by us.
Presenting all necessary documentation upfront facilitates a smooth and efficient process, ensuring that your application to Nationwide is well-prepared for a prompt and favourable decision.
At Mortgage Knight, we maintain a strong relationship with Nationwide. Avoid risking your application; let us guide you through the process with expertise and care.
Nationwide Contractor Mortgage
Nationwide is a well-established High Street lender that provides mortgage solutions tailored specifically for contractors. Whether you’re a day rate or hourly rate contractor, Nationwide’s policies are designed to accommodate contractors of all income levels. This includes contractors working through their own limited company or those employed under a payroll umbrella.
At Mortgage Knight, our team of seasoned mortgage brokers is well-versed in Nationwide’s contractor mortgage criteria. We can ensure your application is aligned with their specific requirements, maximising your chances of success. Applying directly or via an inexperienced broker could lead to unnecessary delays or even rejection. Our professional guidance helps secure competitive rates with Nationwide, streamlining the process for you.
Nationwide’s Contractor Mortgage Policy
Nationwide offers a flexible and inclusive approach for contractors. Whether you’re a first-time contractor or have been contracting for years, understanding their policy is key to a successful application.
Contract Rates
Nationwide does not set a minimum contract rate for contractors. This makes it possible for contractors across all professions, regardless of their day or hourly rate, to apply. Whether you’re earning £200 a day or £600 a day, your application will be reviewed with equal consideration.
Contracting Experience
One of the essential requirements is that contractors need to have at least 12 months of contracting experience. This experience can come from one or multiple contracts, but a full year is necessary for Nationwide to consider your application. If you’re new to contracting or have less than a year’s experience, it’s likely your application won’t be accepted.
Contract Duration
For your application to be successful, your current contract must have at least four weeks remaining at the time of the application. If your contract is nearing its end, Nationwide may request proof of a contract extension or a new contract to ensure future income stability.
Employment Gaps
Nationwide understands that contractors may have periods between contracts. They allow for up to 12 weeks of gaps between contracts over the past year. Breaks for holidays or other personal reasons are also acceptable, provided there has been consistent work over the previous 12 months.
Fixed-Term Contracts
Nationwide requires contracts to have a clearly defined end date. This is in line with their policy for fixed-term contracts. Open-ended or rolling contracts may not meet their criteria unless specific arrangements are made.
Nationwide’s Method of Calculating Contractor Income
Nationwide uses a unique method to assess a contractor’s income for mortgage purposes. They base the mortgage calculations on the gross contract value, which is determined as follows:
- For day rate contractors, they multiply the daily rate by five (working days per week) and then by 52 weeks, using 80% of this total.
- For hourly rate contractors, they multiply the hourly rate by 37.5 hours (or the actual hours if specified), then by 52 weeks, using 80% of the total value.
Examples of Income Calculations
Day Rate Contractor
If you earn £350 per day:
£350 x 5 days x 52 weeks x 0.80 = £72,800 gross contract value.
Hourly Rate Contractor
If you earn £42 per hour:
£42 x 37.5 hours x 52 weeks x 0.80 = £65,520 gross contract value.
This calculation ensures that Nationwide bases its decision on a consistent and fair assessment of your income potential, regardless of whether you’re paid by the day or hour.
Essential Application Requirements for Contractors
When applying for a contractor mortgage with Nationwide, ensuring that you submit all the required documentation is crucial. Here’s a list of the key documents you’ll need:
Proof of ID
A valid Passport or DVLA driving licence.
Proof of Address
Recent utility bills or a council tax bill.
Current Contract
Signed and dated contract with full terms and conditions.
Up-to-date CV
This should demonstrate your work history and relevant experience.
Bank Statements
At least three months of both personal and business bank statements are required.
Proof of Deposit
If you’re purchasing a property, you’ll need proof of deposit or a letter confirming a gifted deposit. Mortgage Knight can provide the necessary templates to assist you.
Having all these documents ready in advance will make the process smoother and quicker, allowing Nationwide to evaluate your application promptly.
Why Choose Mortgage Knight for Nationwide Contractor Mortgages?
At Mortgage Knight, we have an established working relationship with Nationwide, meaning we understand their processes and requirements inside out. Our expertise can help you avoid common pitfalls and increase the likelihood of a successful application
Benefits of Using a Specialist Broker:
Expert Knowledge
We understand Nationwide’s specific contractor mortgage requirements, saving you time and effort.
Tailored Advice
We ensure that your application is optimised to meet Nationwide’s criteria, improving your chances of securing a mortgage at a competitive rate.
Access to Exclusive Rates
Mortgage Knight can help you access some of the best rates on offer from Nationwide, which may not always be available to the general public.
Smooth Process
By preparing all the necessary documentation and managing your application from start to finish, we help avoid delays or rejection.
Get Started with Your Nationwide Contractor Mortgage Today
If you’re a contractor looking for a mortgage, Nationwide offers competitive options that cater to your unique financial situation. At Mortgage Knight, we are here to help you through every step of the process. Contact us today for expert advice and to begin your application.
By working with our experienced brokers, you can rest assured that your mortgage application is in good hands, leaving you free to focus on your work without the stress of navigating the mortgage process alone.
