Clydesdale Bank Intermediaries has improved its criteria for assessing mortgage applications from self-employed contractors.
The bank will now accept applications up to 95% LTV from contractors who have more than one year’s contractor experience and who have had their contract renewed at least once.
The Clydesdale is also able to help contractors with less than one year’s contractor experience, providing the LTV is a maximum of 70%.
For these self-employed contractors, Clydesdale Bank now use the current contract rate for income calculation, which is multiplied by 46 weeks.
Clydesdale Bank continues to accept applications from self-employed contractors working in any sector, subject to a minimum calculated income of £50,000 per annum, and contractors must have a minimum period of two years’ experience (employed or contracting) in same the industry. Gaps between contracts of up to six weeks are acceptable with longer gaps requiring referral to the lender.
Sarah Green, head of intermediary mortgages, said: “Mortgages for contractors is a segment in which Clydesdale Bank has long held a strong presence and is an area we’re proud to be able to support through our underwriting skill and expertise.
“We’re delighted to announce these positive changes today which will not just make us easier to do business with but will also allow us to help a greater range of customers. The improvements follow engagement with partners throughout the broker community and focus on what is most important to our customers, so we’re confident the changes will have a positive impact in the market.”