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Clydesdale Contractor Mortgages

Clydesdale Bank is one of the high-street lenders with a clear and flexible contractor mortgage policy. Whether you’re on a daily rate, inside IR35, or using an umbrella company, Clydesdale offers contractor-friendly products — with lending up to 95% LTV in many cases.

At Mortgage Knight, we know exactly how Clydesdale assess contractors and will prepare your case to fit their rules, ensuring a smooth approval process.

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Clydesdale Contractor Mortgage Criteria

Daily Rate Contractors
  • Income calculation: Current contract × 46 weeks.
  • Contract runway: If less than 1 month remains, evidence of renewal is required.
  • Gap rule: Maximum 6 weeks between contracts (longer gaps assessed individually).
Experience & LTV
  • Under £50k income: 2 years’ contracting experience + at least one renewal. Max LTV 95%.
  • £50k+ income, 1 year+ contracting: At least one renewal. Max LTV 95%.
  • £50k+ income, <1 year contracting: Must show 2 years’ experience in the same industry (employed or contracting). Max LTV 70%.
  • Company structures: Limited companies acceptable (if no other contractors employed). Offshore structures not accepted.
IR35 & Umbrella Contractors
  • Accepted under Clydesdale’s policy.
  • Payslip treatment: Statutory employer costs (NI, Apprenticeship Levy, payroll fees) deducted from gross pay before applying the 46-week multiplier.
Fixed-Term &
Renewable Contracts
  • Fixed-term contracts: Accepted if 2 years’ continuous employment and ≥12 months left on current contract.
  • Renewable contracts: Accepted if ≥6 months in length and renewed at least once.
  • Seasonal/short-term employment: Not acceptable.
Additional Considerations
  • Applicants should generally only hold one active contract.
  • Significant pay rises in recent contracts may trigger further checks.
  • Recurring business expenses shown on statements may affect affordability.

Why Contractors Use Clydesdale

Clear, fair day-rate affordability model (×46 weeks).

Umbrella & IR35 accepted with payslip adjustments.

High LTV up to 95% for many contractors.

Trusted high-street bank with competitive rates.

Case Studies

1) Mark – IT Contractor (£550/day)

Profile: 18 months’ contracting experience, income above £50k, 90% LTV purchase.
Challenge: Contract had just 3 weeks left.
Solution: Provided renewal documentation + 12 months’ contract history.
Outcome: Approved with Clydesdale at 90% LTV.

2) Sarah – Umbrella PAYE Nurse

Profile: Paid via umbrella, gross annualised £48k.
Challenge: Concern about deductions affecting affordability.
Solution: Packaged umbrella payslips showing employer deductions and consistent income.
Outcome: Application accepted at 85% LTV, first-time buyer mortgage secured.

3) James – Engineer, £52k, <1 Year Contracting

Profile: Recently switched to contracting, 8 months’ experience.
Challenge: Did not meet 1-year contracting rule.
Solution: Demonstrated 10 years’ employed history in same industry.
Outcome: Approved with Clydesdale at 70% LTV.

Frequently Asked Questions

They use your current daily rate multiplied by 46 weeks (after employer costs for umbrella/IR35).

There’s no set minimum, but £50k gross income determines which rules and LTV limits apply.

Yes, if you earn over £50k and can show 2 years’ industry experience. Otherwise, 1–2 years’ contracting history is required.

Yes, Clydesdale accepts umbrella/IR35 income, with payslip adjustments to remove employer costs.

Up to 6 weeks is fine. Longer gaps may be reviewed individually.

Get Your Clydesdale Contractor Mortgage with Mortgage Knight

We know Clydesdale’s contractor lending rules inside-out — from day-rate calculations to IR35 payslip deductions. Whether you’re a new contractor or established, we’ll package your case correctly and secure the best deal.

Contact us today