Skipton Building Society has established itself as a leading contractor-friendly lender, offering competitive mortgage solutions including 95% LTV options and their Income Booster (formerly JBSP) product for contractors. Their approach focuses on day rate assessment rather than requiring traditional payslips, making them particularly accessible for contractors operating through various business structures.
As specialists in Skipton Building Society contractor mortgages, we provide expert guidance on their 95% LTV options, Income Booster applications, and contractor-specific assessment criteria. Our role is to help contractors navigate Skipton’s requirements and optimise their applications for maximum borrowing potential.
Skipton's Contractor-Friendly Approach
Day Rate Assessment Focus: Skipton Building Society provides contractors with favourable lending criteria based on day rates instead of accounts or payslips, with income calculation involving the daily contract rate multiplied by 5 and then by 48 weeks for contractors earning over £50,000.
Flexible Business Structure Recognition: Skipton’s mortgage lending criteria eradicate the need for umbrella payslips and treat sole trader contractors as equals, providing flexibility for contractors operating through different business structures.
Professional Expertise Focus: Skipton goes the extra mile for medical professionals and teachers who’ve been in the profession for at least 2 years and are providing locum or supply work, with a ‘no minimum income’ policy.
Streamlined Application Process: Skipton Building Society stands out as a premier choice for contractor mortgages, renowned for its efficient processing times and streamlined application process.
95% LTV Options for Contractors
High LTV Availability: Skipton offers mortgages at 95% LTV on new build houses, with JBSP mortgage LTV increased to 95% from 85%, providing contractors with high leverage opportunities.
New Build Specialisation: Skipton accepts applications up to 95% LTV for New Build houses and flats, with clients buying New Build properties who have an LTV over 90% needing to select a product from their dedicated New Build range.
Enhanced Borrowing Capacity: First time buyers can borrow up to 5.5x their salary to buy their first home (up to 95% Loan to Value), providing significant borrowing capacity for suitable contractors.
Competitive Market Position: 95% LTV options position Skipton competitively in the contractor mortgage market, enabling property purchase with minimal deposit requirements.
Income Booster (JBSP) for Contractors
Multi-Applicant Support: Skipton’s Income Booster proposition provides an option for another party, such as friends or family, to join the mortgage so that their income can be used to calculate affordability, accepting up to four applicants and up to all four incomes.
95% LTV with Income Booster: Skipton is lending up to 95% LTV on New Build houses and flats with Income Booster mortgages, combining high leverage with additional income support.
Enhanced Affordability: Income Booster enables contractors to access higher borrowing amounts by including additional applicants’ incomes in affordability calculations.
Flexible Family Support: The Income Booster approach allows family members to support contractor mortgage applications without becoming property owners.
Contractor Income Assessment Criteria
£50,000+ Income Threshold: Contractors earning £50k and above must meet specific criteria, including a minimum of 2 years in their chosen profession, six months contract history, a minimum income of £50,000 (using daily rate), and at least one month remaining on the current contract.
Day Rate Calculation Method: Income calculation involves the daily contract rate multiplied by 5 and then by 48 weeks, though some sources reference 45 weeks for contractors earning more than £50,000 per year.
Lower Income Contractors: Contractors on a daily rate earning less than £50,000 per year need to share their latest payslips/invoices for income assessment.
Professional Experience Requirements: Skipton underwriters like to see history in a field of work if an applicant is new to contracting, with any applicant’s CV showing six months’ contracting experience plus two years’ experience in their given industry.
Documentation Requirements
Essential Documentation: Applicants need to provide a copy of their current contract, with contracts having one month or less remaining requiring approach to agency/client for extension.
Bank Statement Requirements: Skipton’s underwriters use one month’s personal and business bank accounts to support applications, using these to substantiate income and gauge applicants’ overall expenditure.
Payslip Elimination: What contractors won’t need to provide are payslips, eradicating a huge headache for umbrella contractors.
Professional Documentation: Contractors will typically be required to present a copy of the current contract, copies of previous contracts where necessary to verify at least 6 months of contract history, and the latest personal or business bank statement.
Specialist Contractor Categories
Medical Professionals: Skipton Building Society provides tailored lending criteria specifically for locum mortgages, medical professionals’ mortgages with over two years of experience, implementing a flexible policy that does not require a minimum income.
Construction Industry Scheme (CIS): For Construction Industry Scheme (CIS) workers, Skipton requires a minimum of 2 years in their chosen profession, with income calculated as an average of the last three months’ payments, and there is no minimum income requirement.
Supply Teachers: Skipton provides specialist criteria for supply teachers with over two years of experience, recognising the unique financial circumstances of these roles.
Zero Hours Contractors: Skipton has always been happy to consider customers employed on a zero-hours contract or via an agency, especially where they can see a history of earnings.
Application Process and Timelines
Efficient Processing: According to Skipton Building Society, in April 2025, it took on average 9-10 days for applicants to receive a mortgage offer, demonstrating efficient processing for suitable applications.
Decision in Principle: Applications can include Decision in Principle options, providing indicative borrowing capacity before full application submission.
Underwriter Assessment: Skipton’s underwriters judge each case on merit, with an applicant’s credit status determining any firm mortgage offer.
Professional Guidance Benefits: Given Skipton’s specific contractor criteria and documentation requirements, professional guidance helps optimise applications and ensure compliance with their assessment methods.
Competitive Advantages
Flexible Lending Approach: Skipton Building Society is a fairly flexible lender, when compared to some bigger name high street banks, offering options that are fairly niche, such as joint mortgages where all 4 applicants’ income is counted.
Building Society Benefits: As a building society, Skipton is owned by its members and is rooted in community values, providing a different approach to commercial bank lending.
Award Recognition: Consumer website, Which? has rated Skipton Building Society as the UK’s second-best lender for borrowers in 2024, demonstrating their market position.
Comprehensive Product Range: Skipton offers a complete range of contractor-friendly products including first-time buyer options, remortgaging, and investment property finance.
Professional Guidance Benefits
Skipton-Specific Expertise: Professional guidance helps navigate Skipton’s specific contractor criteria, documentation requirements, and application processes for optimal outcomes.
Income Calculation Optimisation: Expert advice ensures contractors understand and optimise Skipton’s day rate calculation methods for maximum borrowing capacity.
95% LTV Strategy: Professional guidance helps identify optimal strategies for accessing Skipton’s 95% LTV options and Income Booster products.
Application Preparation: Expert preparation ensures applications meet Skipton’s specific requirements whilst presenting contractor income and circumstances effectively.
Case Studies
Case Study 1: IT Contractor - 95% LTV New Build
Situation: An IT contractor with £600 daily rate wanted to purchase a new build property with minimal deposit requirements.
Skipton Application: Professional guidance helped structure the application using Skipton’s day rate calculation (£600 × 5 × 48 weeks = £144,000 annual income) for 95% LTV new build finance.
Outcome: Successful approval for 95% LTV mortgage, enabling new build purchase with minimal deposit requirement.
Case Study 2: Medical Locum - Income Booster Support
Situation: A locum doctor with variable income needed family support to enhance mortgage affordability for property purchase.
Income Booster Strategy: Application utilised Skipton’s Income Booster product, combining the contractor’s locum income with family member support for enhanced affordability.
Outcome: Successful mortgage approval with family income support, enabling property purchase that wouldn’t have been possible through an individual application.
Case Study 3: Construction Contractor - CIS Mortgage
Situation: A CIS contractor needed mortgage finance based on construction industry income patterns with a specialist lender understanding.
Skipton CIS Application: Professional guidance helped navigate Skipton’s CIS-specific criteria, using average income calculation over recent months.
Outcome: Successful mortgage approval recognising CIS income patterns and construction industry experience.
Frequently Asked Questions
Q1. Does Skipton Building Society really offer 95% LTV for contractors?
Ans: Yes, Skipton offers 95% LTV mortgages, particularly for new build properties, and their Income Booster product can provide 95% LTV with additional applicant support.
Q2. How does Skipton calculate contractor income?
Ans: For contractors earning over £50,000, Skipton typically calculates income as daily rate × 5 days × 48 weeks, though specific calculations may vary based on individual circumstances.
Q3. What is Skipton's Income Booster mortgage?
Ans: Income Booster (formerly JBSP) allows up to four applicants to join a mortgage application, using all their incomes for affordability calculation whilst typically only one becomes the property owner.
Q4. Do contractors need payslips for Skipton applications?
Ans: No, Skipton’s approach eliminates the need for payslips, focusing instead on contract documentation and bank statements showing actual income receipts.
Q5. What experience do contractors need for Skipton mortgages?
Ans: Skipton typically requires six months’ contracting experience plus two years’ experience in the relevant industry, though criteria may vary for different contractor types.
Q6. How quickly does Skipton process contractor mortgage applications?
Ans: Recent data shows Skipton averaged 9-10 days for mortgage offers in April 2025, though timelines depend on application complexity and documentation completeness.
Expert Skipton Building Society Contractor Mortgage Guidance
If you’re a contractor interested in Skipton Building Society’s 95% LTV options or Income Booster products, our specialist team provides expert guidance on their contractor-specific criteria and application requirements.
Get your Skipton contractor mortgage consultation today. We’ll assess your eligibility, optimise your income presentation, and guide you through their specific requirements for maximum borrowing potential.
