All you need to know about mortgage applications for contractors

Contractors earning over £75,000 we’ll calculate their income as their weekly contracted income multiplied by 46.

We accept variations of a contract’s pay rate e.g. hourly, daily or weekly etc. Please see below for common examples:

Where your  customer’s income is less than £75,000  please see the relevant section on our self-employed hub instead.

When submitting a High Income Contractor / Day Rate Contractor application, please key the applicant as Self-employed and input the same annualised day rate income figure in the ‘drawings/salary’ box for the last 2 years income which will be requested.

We’ll need:

• Latest 3 months’ consecutive personal and business bank statements to help identify all significant business expenses. 

• A copy of the contract(s) to cover a 12-month period. A minimum of 6 months’ contract(s) must have already been completed at the point of application.
• Can’t have taken more than a 6 week break between contracts in the 12-month period. 

Sending us packaging: For new business applications, the portal will ask you to upload Self-employed income verification. Instead, upload the specific documents listed above and include a memo to explain that the income you have declared is for a High Income Contractor. 

They must meet one of the following:

• Single applicant where they own 100% of the company.

• Joint application where 1 applicant owns 100% of the company.

• Joint application where the company is jointly owned.

• Joint application where 1 applicant owns 100% of the company and the other applicant is employed by the company. 

Any significant business expenses that are not covered by the applicant’s contract must be fully understood, evidenced and accounted for in the affordability calculation, including:

• Car/finance loans.

• Extended travel and accommodation costs.

• Training courses.

• Professional indemnity insurance.

• Partner/spouse/employee salaries (spouse’s income only needs to be factored in if their income is being included on the application under the ‘income’ section).

This is not an exhaustive list.