Leeds BS is a great contractor friendly 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, Leeds BS will take a view and consider your application.
Leeds Building Society will lend up to 85% loan to value.
Leeds Building Society’s policy towards day rate contractors is as follows
- Leeds Building Society will consider and accept applications from contractors on a gross contract value of £50,000
- They will accept applications from all professions, and do not limit the occupation.
- Leeds BS will want to see some time remaining on your contract, like 4 weeks, you do not need a lengthy 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.
- Leeds BS do not like gaps in employment history, they want you to be working continuously in the preceding 12 months, obviously, having holiday or taking a few weeks out is not an issue, but if you have several months off in the 12 months, then it may be better to look at one of our other contractor friendly lenders. Leeds BS will allow up to 6 weeks in between contracts.
- Multiple contracts are accepted by Leeds BS, so if you work 2 days on one contract and 3 days on another, then this is something that Leeds Building society will consider.
- Leeds Building Society will expect at least one renewal.
Leeds Building Society will calculate your gross contract value in the following way:
- Leeds Building society tend to take your day rate then multiply by 5 days then multiply this by 46 weeks (230 working days) to reach the gross contract value.
- They will not utilise the average of the previous year to reach an average day rate.
- For example, if on a day rate or hourly rate
- £217.50 per day x 5 days x 46 weeks = £50,025 gross contract value
- £29 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £50,025 gross contract value
In order to package your application, we will require.
- 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 history with at least 1 renewal.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months 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 Halifax contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.