Virgin Money Contractor Mortgage

Virgin Money stands out as a prominent High Street lender, particularly notable for its Contractor Mortgages department. This department is open to considering and accepting applications from both day rate and hourly rate contractors, potentially from Day 1 of contracting.

Virgin Money is open to applications from contractors operating through their own limited company or an umbrella company. Known for its contractor-friendly approach, Virgin Money boasts a dynamic underwriting team with a good level of discretion.

Key Aspects of Virgin Money’s Policy for Day Rate Contractors

Contract Value Requirements

Virgin Money stipulates a minimum contract value of £50,000, equating to a day rate of £217. This applies to contractors with less than 24 months of contracting history. For those with 24 months or more, there is no minimum day rate required.

Hourly Rate Contractors

Contractors paid on an hourly rate are also considered by Virgin Money.

Work Experience

Virgin Money requires contractors to have been in the same line of work for at least 24 months.

Contract Duration

Applications are accepted from contractors with a minimum of three months remaining on their contract, or an extension if applicable.

Day 1 Contractors

Significantly, Virgin Money can consider day 1 contractors, marking a major development in their lending policy.

Employment History

While Virgin Money prefers a consistent work history, having up to 6 weeks between contracts is acceptable. Longer gaps can be discussed with them.

Gross Contract Value Calculation

Virgin Money calculates gross contract value by multiplying the day rate by five (for a working week) and then by 46 weeks. They do not use the average of the past two years to determine the daily rate.

Example Calculations

Day Rate: £327 per day x 5 days x 46 weeks = £75,210 gross contract value.
Hourly Rate: £43.50 per hour x (stipulated or 37.5 hours default) x 46 weeks = £75,037.50 gross contract value.

Borrowing capacity is up to 4.49 times the income, and 4 times for amounts over £500,000.

Application Requirements

Proof of ID (such as a Passport or DVLA Licence).
Proof of Address (such as a Utility Bill and Council Tax Bill).
Current Contract with Terms and Conditions, signed and dated.
Previous contract to evidence 12 months of contracting history or 24 months of employment history if the contracting history is insufficient.
An up-to-date CV to demonstrate a strong work record.
A signed Declaration and Direct Debit Mandate, which we will provide.
Three months of personal and business bank statements.
Proof of deposit or a gifted deposit letter for property purchases, with a template provided by us if needed.

Providing all documentation upfront ensures a smooth process and enables us to present your application to Virgin Money’s underwriters effectively, leading to a prompt and positive decision.

Instead of navigating the application process alone, let our experts at Mortgage Knight handle your application from start to finish, ensuring a successful mortgage offer from Virgin Money.