Clydesdale is a great lender who will accept and consider applications from day rate contractors and hourly rate contractors.
Whether you are a contractor operating through your limited company or through a payroll umbrella, Clydesdale will take a view and consider your application.
Clydesdale is a flexible lender, who applies a manual underwriting approach, so is a lender who will allow exceptions in some cases.
Clydesdale policy towards day rate contractors is as follows:
- Clydesdale will want you to be contracting for 24 months as a minimum
- Clydesdale will consider applications from all contractors
- Unlike other contractor-friendly lenders, they will accept and consider applications with a minimum contract value of £50,000
- This equates to a daily rate of £217.50 as a minimum day rate contract.
- Clydesdale will want to see some time remaining on your contract, like 4 weeks, you do not need a long time remaining, they understand that contracts are short term and do not insist on more than four weeks, if you have less than this, they will more than likely ask for an extension or new contract that you will be moving onto.
- Clydesdale does not like gaps in employment history, they want you to be working continuously in the preceding 24 months, obviously, having a holiday or taking a few weeks out is not an issue, they will allow 6 weeks in between contracts.
- Clydesdale will average your contract value in the preceding 12 months, so the current contract value will not be utilised, it will be the average value over 12 months.
- Clydesdale will calculate your gross contract value in the following way:
- Clydesdale tend to take your day rate then multiply by 5 days then multiply this by 46 weeks to reach the gross contract value.
- They will not utilise the average of the previous year to reach an average daily rate.
For example, if your day rate or hourly rate is £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 46 weeks = £72,450 gross contract value
In order to package your application, we will require the below:
- Proof of ID such as Passport or DVLA Licence
- Proof of Address such as Utility Bill and Council Tax Bill
- Current Contract with the Terms and Conditions needs to be signed and dated
- Previous Contract to evidence 12 months contract history
- Clydesdale Declaration, Direct Debit Mandate and Assets and Liabilities Statements.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months of personal and business bank statements
- If purchasing, then we will require proof of deposit or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required.
Having everything up front makes our job easier and ensures that we can present your application to the Clydesdale contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.