Clydesdale Contractor Mortgage

If you’re a contractor looking for a mortgage, Clydesdale Bank might just be the lender you’ve been searching for. Known for their flexible approach and willingness to consider both day rate and hourly rate contractors, Clydesdale makes getting a mortgage more accessible, even if your employment situation isn’t traditional.

Whether you operate through a limited company or a payroll umbrella, Clydesdale is open to reviewing your application.

Why Clydesdale is Ideal for Contractors

Clydesdale stands out in the market due to their flexible lending criteria and manual underwriting process. This means they don’t just rely on automated systems but have real underwriters assess each application individually. This approach allows them to make exceptions and consider the unique aspects of your contracting history.

Here are some of the main reasons why Clydesdale is a top choice for contractors:

Flexible Criteria

Clydesdale welcomes applications from contractors in various industries.

Manual Underwriting

Each application is personally reviewed, allowing for a more nuanced assessment.

Non-Traditional Income Considered

They understand the complexities of contractor income, whether you're drawing a salary, taking dividends, or relying on day rates.

Clydesdale’s Contractor Mortgage Criteria

To ensure your application goes smoothly, it’s essential to understand Clydesdale’s criteria for contractor mortgages. Here’s what you need to know:

Contracting Experience

Minimum Requirement

You need at least 24 months of contracting experience.

Employment Gaps

Short breaks between contracts (up to six weeks) are acceptable, as they understand the nature of contracting work.

Contract Value and Duration

Minimum Contract Value

Clydesdale requires a minimum annual contract value of £50,000. This translates to a daily rate of £217.50.

Remaining Contract Duration

You must have at least four weeks left on your current contract. If you have less time remaining, you may need to show an extension or a new contract.

Income Calculation

Day Rate Calculatio

Clydesdale calculates your gross contract value by multiplying your day rate by five (working days) and then by 46 weeks.

Hourly Rate Calculation

For those on an hourly rate, the formula is similar, using a default of 37.5 hours per week unless otherwise stipulated.

Key Benefits of Choosing Clydesdale

Clydesdale’s manual underwriting process gives them the flexibility to take a common-sense approach to lending. They recognise that contractors often work in a tax-efficient manner and shouldn’t be penalised for not drawing a traditional salary. This means they can offer competitive high street mortgage rates and a borrowing capacity that reflects your true earning potential.

Highlights of Clydesdale’s Contractor Mortgages

Highly Competitive Rates: Access to favourable mortgage rates usually reserved for traditional employees.
Customised Approach: Each application is considered on its own merits, increasing your chances of approval.
Quick Processing Times: With all documentation in place, you can expect a mortgage in principle within 24 hours.

How Mortgage Knight Can Assist

At Mortgage Knight, we have a direct line to Clydesdale’s senior underwriters, ensuring that your application is reviewed by professionals who truly understand contractor-specific challenges. Our team is experienced in handling contractor mortgage applications, and we know exactly what Clydesdale is looking for.

Our Process

Initial Consultation: We’ll discuss your circumstances and determine if Clydesdale is the best fit for you.
Document Review: We’ll ensure you have all the necessary paperwork in order.
Application Submission: We’ll submit your application to Clydesdale with a complete set of documents, reducing the chance of delays.
Quick Turnaround: Typically, we can secure a mortgage in principle within 24 hours, with the full application process taking around three days and completion in two to four weeks.

Essential Documentation for a Clydesdale Contractor Mortgage

To present a strong application, make sure you have all the necessary documentation ready:

Passport or driving licence for identification.
Recent utility or council tax bill for address.
Signed and dated current contract with terms.
Previous contracts showing at least 12 months’ work.
Last three months of bank statements.
Updated CV detailing your contracting history.
Proof of deposit or gifted deposit letter.