Newbury Building Society contractor mortgage lending criteria
Newbury Building Society underwrites all contractor mortgage applications on a manual basis. Therefore, the experienced underwriting team foregoes algorithms, assessing every applicant on merit, instead.
Utilising this commonsense approach means that neither industry nor income inhibits contractors from applying. The building society welcomes all professional† contractors, using contract day rates to work out mortgage affordability.
Lending criteria for fixed-term contractors
Newbury welcomes all professional contractors. By †professional, the building society means IT contractors, teachers, doctors, accountants etc.
The lender has little restriction on payment structure, either. Newbury accepts:
- Limited company contractors
- Umbrella payroll employees
- Sole traders
- CIS workers (see below for CIS workers’ criteria)
Contract guidlines
Contractors must have three months remaining on their current contract at time of application. Ideally, the contractor should also have gaps of no more than (a generous) three months between contracts over the last 12 months.
Newbury welcomes “day-one” contractors, providing they have a proven record in the same industry.
Compare the latest mortgage deals from Newbury Building Society
Newbury Building Society affordability assessment
Underwriters use the income outlined in the contract to assess affordability. If the contract doesn’t stipulate, underwriters assume a five-day working week. The calculation, unless the contract states otherwise, is:
- Day rate (£)* × 5 days (per week) × 48 weeks (per year)
Newbury then multiplies the total of that calculation by their mortgage multiplier to determine how much a contractor can borrow.
Where applicable, the underwriting team will use payslips to verify income.
*Foreign currency
Newbury Building Society offers flexibility for contractors paid in foreign currencies. The lender accepts a wide range of foreign income types, including dollars, euros, dirhams and francs.
Find out how much you can borrow
Criteria for the Construction Industry Scheme
CIS applicants must have at least 12 months’ history as a CIS contractor at time of application. The Scheme they’re working on must also have HMRC approval.
Underwriters work out CIS contractors’ affordability on their annualised contract value up to a maximum of 48 weeks.
Criteria for zero hour contractors
Newbury will consider applications from zero-hour contractors.
The contractor must have a track record of consistent earnings over a period of at least 24 months.
Talk to the contractor mortgage experts
As the leading mortgage broker for contractors and the flexible labour workforce, you’ll be in safe hands with Freelancer Financials.
We are a 100% independent mortgage and protection broker with access to every mortgage from every lender. That means we can offer truly unbiased advice and find you the best deal for your unique circumstances.
Established in 2004, we have a proven track record of arranging over 30,000 mortgages for contractors. This includes umbrella company workers, LTD contractors, CIS subcontractors and the self-employed.
It’s not just us professing our expertise. We have almost 1,000 5-star reviews from clients to back up our claims. Our specialist broking team will support you from pre-application to completion. Whatever your mortgage needs, it’s time to talk to the experts.
Newbury in a nutshell
The lender is strict on credit. If you have adverse credit, you need to look at another provider. Also, as Newbury underwrites each application manually, it may take a little longer to process.
But there are many other excellent reasons why Newbury Building Society might be your best option:
- Three months gaps between contracts
- Up to 48 weeks in the affordability assessment
- No limits on industry or income
- Excellent with foreign currencies
To begin your enquiry, talk to our experienced advisors today.
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