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Nationwide Contractor Mortgage

Nationwide is a well-established High Street lender that provides mortgage solutions tailored specifically for contractors. Whether you’re a day rate or hourly rate contractor, Nationwide’s policies are designed to accommodate contractors of all income levels. This includes contractors working through their own limited company or those employed under a payroll umbrella.

At Mortgage Knight, our team of seasoned mortgage brokers is well-versed in Nationwide’s contractor mortgage criteria. We can ensure your application is aligned with their specific requirements, maximising your chances of success. Applying directly or via an inexperienced broker could lead to unnecessary delays or even rejection. Our professional guidance helps secure competitive rates with Nationwide, streamlining the process for you.

Nationwide Contractor Mortgage

Nationwide’s Contractor Mortgage Policy

Nationwide offers a flexible and inclusive approach for contractors. Whether you’re a first-time contractor or have been contracting for years, understanding their policy is key to a successful application.

Contract Rates

Nationwide does not set a minimum contract rate for contractors. This makes it possible for contractors across all professions, regardless of their day or hourly rate, to apply. Whether you’re earning £200 a day or £600 a day, your application will be reviewed with equal consideration.

Contracting Experience

One of the essential requirements is that contractors need to have at least 12 months of contracting experience. This experience can come from one or multiple contracts, but a full year is necessary for Nationwide to consider your application. If you’re new to contracting or have less than a year’s experience, it’s likely your application won’t be accepted.

Contract Duration

For your application to be successful, your current contract must have at least four weeks remaining at the time of the application. If your contract is nearing its end, Nationwide may request proof of a contract extension or a new contract to ensure future income stability.

Employment Gaps

Nationwide understands that contractors may have periods between contracts. They allow for up to 12 weeks of gaps between contracts over the past year. Breaks for holidays or other personal reasons are also acceptable, provided there has been consistent work over the previous 12 months.

Fixed-Term Contracts

Nationwide requires contracts to have a clearly defined end date. This is in line with their policy for fixed-term contracts. Open-ended or rolling contracts may not meet their criteria unless specific arrangements are made.

Nationwide’s Method of Calculating Contractor Income

Nationwide uses a unique method to assess a contractor’s income for mortgage purposes. They base the mortgage calculations on the gross contract value, which is determined as follows:
  • For day rate contractors, they multiply the daily rate by five (working days per week) and then by 52 weeks, using 80% of this total.
  • For hourly rate contractors, they multiply the hourly rate by 37.5 hours (or the actual hours if specified), then by 52 weeks, using 80% of the total value.

Examples of Income Calculations

  • Day Rate Contractor:
    If you earn £350 per day:
    £350 x 5 days x 52 weeks x 0.80 = £72,800 gross contract value.
  • Hourly Rate Contractor:
    If you earn £42 per hour:
    £42 x 37.5 hours x 52 weeks x 0.80 = £65,520 gross contract value.
This calculation ensures that Nationwide bases its decision on a consistent and fair assessment of your income potential, regardless of whether you’re paid by the day or hour.
Essential Application Requirements for Contractors

Essential Application Requirements for Contractors

When applying for a contractor mortgage with Nationwide, ensuring that you submit all the required documentation is crucial. Here’s a list of the key documents you’ll need:

  • Proof of ID: A valid Passport or DVLA driving licence.
  • Proof of Address: Recent utility bills or a council tax bill.
  • Current Contract: Signed and dated contract with full terms and conditions.
  • Up-to-date CV: This should demonstrate your work history and relevant experience.
  • Bank Statements: At least three months of both personal and business bank statements are required.
  • Proof of Deposit: If you’re purchasing a property, you’ll need proof of deposit or a letter confirming a gifted deposit. Mortgage Knight can provide the necessary templates to assist you.

Having all these documents ready in advance will make the process smoother and quicker, allowing Nationwide to evaluate your application promptly.

Why Choose Mortgage Knight for Nationwide Contractor Mortgages?

At Mortgage Knight, we have an established working relationship with Nationwide, meaning we understand their processes and requirements inside out. Our expertise can help you avoid common pitfalls and increase the likelihood of a successful application


Benefits of Using a Specialist Broker:

Expert Knowledge: We understand Nationwide’s specific contractor mortgage requirements, saving you time and effort.

  • Tailored Advice: We ensure that your application is optimised to meet Nationwide’s criteria, improving your chances of securing a mortgage at a competitive rate.
  • Access to Exclusive Rates: Mortgage Knight can help you access some of the best rates on offer from Nationwide, which may not always be available to the general public.
  • Smooth Process: By preparing all the necessary documentation and managing your application from start to finish, we help avoid delays or rejection.