NatWest Contractor Mortgages

NatWest, one of the ‘big four’ High Street lenders, adopts a contractor-friendly stance in its mortgage offerings. The bank specifically caters to contractors operating through their own limited companies, assessing them based on their gross contract value. This includes both day rate and hourly rate contractors.

Contractor Mortgage Policies at NatWest NatWest’s criteria for contractors entail a minimum gross contract value of £75,000, equating to a day rate of £327 based on a 46-week year. Contractors on hourly rates are also considered, provided their contract meets the £75,000 minimum.

A 12-month contract duration is a prerequisite, so if you’ve been contracting for seven months, NatWest expects an additional five-month contract commitment, or a nine-month contract with three months remaining, totalling a year.

NatWest requires some remaining contract duration, typically around four weeks. They understand the short-term nature of contracts and do not demand an extensive remaining period. For contracts with less than four weeks left, NatWest might request evidence of an impending extension or a new contract.

NatWest exclusively considers contractors running their own limited companies. The assessment includes the cumulative shareholding of the company. For instance, if you hold a 75% shareholding, only 75% of your gross contract value is considered.

Employment History and Gross Contract Value Calculation NatWest prefers a continuous employment history, tolerating brief breaks like holidays. However, several months off within a 12-month period might necessitate considering other contractor-friendly lenders. NatWest is quite accommodating, accepting applications with up to six weeks between contracts.

For gross contract value calculation, NatWest multiplies the daily rate by five (for a working week), then this figure by 46 weeks. They do not use the previous year’s average to determine the daily rate.

For example:

  • £327 per day x 5 days x 46 weeks = £75,210 gross contract value.
  • £43.50 per hour x (stipulated hours or 37.5 hours default) x 46 weeks = £75,037.50 gross contract value.

Application Requirements To prepare your application, NatWest requires:

  • Proof of ID (e.g., Passport or DVLA Licence).
  • Two proofs of address (utility bill and council tax bill).
  • Current and previous contracts to evidence a 12-month contracting history.
  • An up-to-date CV demonstrating a strong work record.
  • Three months of personal and business bank statements.
  • Proof of deposit for purchases (bank statement or gifted deposit letter, with a template provided for the latter).

Having these documents upfront facilitates a seamless application process, enabling a swift and positive decision from NatWest’s underwriters.

Expertise in Contractor Mortgages With extensive experience in contractor mortgages, our expertise ensures that your application is managed with the utmost care, enhancing the likelihood of successful approval on the first attempt.



Click one of our contacts below to chat on WhatsApp

× Whatsapp us..