Loans for contractors

When it comes to contractor clients it can sometimes be difficult to find a 'mainstream' lender who'll consider the case - especially when your client has only recently started contracting. We offer common sense criteria and underwriters you can talk to.

Key information

Minimum income £300/day or £50k per annum

 Up to 95% LTV
 (subject to availability)

Up to 5 x Income
Or 5.5x income with Boost LTI

Fixed Term Contractors
Minimum 12 months left on current contract & 12 month track record contracting
Day rate contractors
Minimum 6 months track record of contract work

Sole traders, Ltd company, PAYE & Umbrella companies

Gaps up to 8 weeks considered as standard
Longer gaps by individual consideration
Day 1 contractors considered
Contact your BDM

Every case managed by a dedicated underwriter

How to get started

Get an estimate of your client’s borrowing needs with our affordability calculator.
View our lending criteria to make sure everything is in order for your client’s application – you can search the criteria by topic or browse by category.
Use our online product finder to search for the right deal for your client.

What you need to know

Min/max loan term

  • The maximum loan term is  40 years
  • The minimum loan term is 5 years
  • The percentage of the mortgage term occurring after age 70 must be less than 25% of the overall mortgage term.


This applies to new business and remortgaging

For product transfers, first check the term remaining on the mortgage. Make sure it qualifies for the products available and the terms allowed on those products.


Loan size and LTV limits for new builds

New build properties are subject to the following maximum loan and LTV limits: 
 

Property type Loan size* Max LTV
House/flat Up to £5m 75%
House/flat Up to £1m 85%
House/flat Up to £750k 90%
Deposit unlock** House (excl. Northern Ireland) Up to £600k 95%

 

*Some products also have a minimum loan requirement, please check this before applying.

*Deposit unlock, exclusive to new build:

  • Available to first time buyers and home movers in England, Wales and Scotland 
  • 5% deposit must come from the clients own funds
  • Our standard lending and affordability criteria applies 
  • Deposit unlocked letter required  

Day rate contractor income

Day rate contractors are acceptable for lending purposes if the following criteria are met:

  • Contracts must relate solely to the applicant
  • Up to 2 contracts can be considered subject to sustainability
  • Minimum 6 months track record of contract work
  • A maximum of 46 weeks income used from the current contract
  • Minimum income £300 per day or £50,000 per annum.

Please note umbrella company deductions will need to be taken into account when calculating affordability.

Gaps of up to 8 weeks are considered standard, while longer gaps are assessed on an individual basis.

  Evidence Required
  • Current and previous contract (s) covering at least 6 months.
  • If no previous contract is available and current contract started less than 12 months ago, previous industry experience and pay should be evidenced via P60’s/ employment contract.
  • If there are less than 2 months remaining on current contract, evidence of contract extension or new contract is needed.

Fixed term contract income

Can be accepted provided that at least 12 months of a contract are remaining, or where there's a track record of income from contract work.
 

  Evidence Required
  • A copy of the current contract
  • A copy of the most recent bank statement
  • To obtain a 12 month track record of contracts or p60s can be used (where <12 months remains on current contract)
  • If <2 months remaining on current contract then evidence of contract renewal/new contract is required
  • 75% LTV - Latest payslip
  • Above 75% LTV - Latest 3 payslips
  • Umbrella: Latest 3 months payslips/invoices and latest 3 months personal bank statements.

 

Zero-hours contracts income

Applicants who are on a zero hour contract will be accepted at 60% of earnings provided they have a minimum of 12 months evidence of sustainable earning on a zero-hour contract basis, and fall into one of the following occupations:

  • NHS Bank nurses and locums
  • Non-NHS Bank nurses
  • Care Home Workers
  • Supermarket Workers
  • HGV Drivers
  • Retained/On-Call Firefighters
  • Armed Forces Reserves
  • Supply Teachers.
  Evidence Required
  • Your clients last 3 payslips plus the bank statement showing the salary credit from your most recent payslip
  • Copy of their current contract (excluding NHS Bank work)
  • Copy of their latest P60.

Product finder

Search our range of mortgage deals with our easy-to-use product finder tool.

  Product finder

 

Affordability Calculator

Our Affordability Calculator will give you a quick estimate of how much your client could borrow.

  Affordability calculator

 

Please choose from the following options

So we can direct you to the right part of our website, please select from the login options below:

Porting? Additional Lending? No need to log in, please click, Porting or Additional Lending  to follow the correct application steps.

NEW BUSINESS - ACCORD MSO

To create an illustration, submit a DIP, upload documents or to track an application for new customers:

ONLINE PRODUCT TRANSFERS

Switch existing Accord clients to a new deal - create an illustration, then apply and accept a product transfer online: