Flexible and Hassle-Free Mortgages with Clydesdale Bank
Meta Description: Are you a contractor or self-employed individual looking for a mortgage? Discover how Clydesdale Bank's refreshing and common-sense approach can help you secure a mortgage with ease. Read on for expert advice, competitive rates, and a seamless borrowing experience.
Are you tired of facing obstacles when trying to secure a mortgage as a contractor or self-employed individual? Many lenders are becoming increasingly risk-averse, relying on inflexible computer systems to make decisions. However, Clydesdale Bank takes a refreshing approach to mortgage lending. With their ultimate common sense and flexible criteria, they make the mortgage process straightforward and hassle-free.
Understanding the Restrictions of Traditional Lenders
When it comes to securing a mortgage, many contractors and self-employed individuals find themselves falling outside the standard lending criteria of most lenders. Regardless of your limited company's successful trading history, your borrowing potential often gets restricted by your salary, dividends, and shareholdings. Clydesdale Bank understands these challenges and offers a more flexible alternative.
Clydesdale Bank's Contractor Mortgage Solution
Clydesdale Bank takes a refreshing approach by evaluating your circumstances on an individual basis. Their underwriters assess your current contract and review your contracting history, background, and future employability. This personalised approach enables them to determine your borrowing capacity based on a comprehensive understanding of your income and financial situation.
Borrowing Capacity Based on Contract Rates
Unlike traditional lenders, Clydesdale Bank considers your full daily or hourly rate as the basis for their calculations. This approach ensures that your maximum lending ability is not restricted by traditional income methods. As a contractor, your decision to draw income in non-traditional ways shouldn't limit your borrowing potential. With Clydesdale Bank, you can access highly competitive "high street" mortgage rates that reflect your contract rates.
Clydesdale is a great lender who will accept and consider applications from day rate contractors and hourly rate contractors.Whether you are a contractor operating through your limited company or through a payroll umbrella, Clydesdale will take a view and consider your application. Clydesdale is a flexible lender, who applies a manual underwriting approach, so is a lender who will allow exceptions in some cases. Clydesdale policy towards day rate contractors is as follows:
- Clydesdale will want you to be contracting for 24 months as a minimum
- Clydesdale will consider applications from all contractors
- Unlike other contractor-friendly lenders, they will accept and consider applications with a minimum contract value of £50,000
- This equates to a daily rate of £217.50 as a minimum day rate contract.
- Clydesdale will want to see some time remaining on your contract, like 4 weeks; you do not need a long time remaining, they understand that contracts are short-term and do not insist on more than four weeks, if you have less than this, they will more than likely ask for an extension or new contract that you will be moving onto.
- Clydesdale does not like gaps in employment history, they want you to be working continuously in the preceding 24 months, obviously, having a holiday or taking a few weeks out is not an issue, they will allow 6 weeks in between contracts.
- Clydesdale will average your contract value in the preceding 12 months, so the current contract value will not be utilised, it will be the average value over 12 months.
- Clydesdale will calculate your gross contract value in the following way:
- Clydesdale tend to take your day rate then multiply by 5 days then multiply this by 46 weeks to reach the gross contract value.
- They will not utilise the average of the previous year to reach an average daily rate.
For example, if your day rate or hourly rate is £350 per day x 5 days x 46 weeks = £80,500 gross contract value
£42 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value
In order to package your application for Clydesdale Contractor Mortgage, we will require the below:
- Proof of ID such as Passport or DVLA Licence
- Proof of Address such as Utility Bill and Council Tax Bill
- Current Contract with the Terms and Conditions needs to be signed and dated
- Previous Contract to evidence 12 months contract history
- Clydesdale Declaration, Direct Debit Mandate and Assets and Liabilities Statements.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months of personal and business bank statements
- If purchasing, then we will require proof of deposit or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required.
Having everything up front makes our job easier and ensures that we can present your application to the Clydesdale contractor mortgage underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
Why Choose Contractor Mortgages Direct for Your Contractor Mortgage?
When navigating the contractor mortgage landscape, the expertise and support of Contractor Mortgages Direct (insert link to Contractor Mortgages Direct website) can make a significant difference. Contractor Mortgages Direct is a leading mortgage brokerage specializing in catering to the unique needs of contractors and self-employed individuals. Their team of experts understands the complexities of contractor mortgages and can guide you through the process, ensuring you receive personalized advice and access to the best mortgage deals.
Expert Guidance and Personalized Service
At Contractor Mortgages Direct, you'll benefit from their specialist knowledge and expertise in bespoke mortgage underwriting. They provide impartial mortgage advice, taking into account your specific circumstances. With their mortgage service guarantee, you can trust that they will guide you through the mortgage process, ensuring a seamless and stress-free experience.
A Network of Lenders Catering to Contractors
Contractor Mortgages Direct has built strong relationships with a network of lenders who understand the unique needs of contractors. This extensive network lets them connect you with lenders such as Clydesdale Bank, who actively cater to the contractor market. With Contractor Mortgages Direct's support, you can access a wider range of mortgage options tailored to your specific needs.
Access to Competitive 'High Street' Mortgage Rates
One of the greatest advantages of working with Clydesdale Bank through Contractor Mortgages Direct is that you can access highly competitive mortgage rates that are on par with those offered on the high street. This means that despite being a contractor or self-employed, you can enjoy the same attractive rates and terms as traditionally employed individuals.
Your Journey to a Contractor Mortgage with Clydesdale Bank
Embarking on the journey to secure a contractor mortgage is easier than you may think. Contractor Mortgages Direct provides a range of calculators, expert tips, and resources to help you understand the process. From understanding affordability to choosing the right lender, their comprehensive mortgage guides will equip you with the knowledge you need to make informed decisions.
With Clydesdale Bank and the expert guidance of Contractor Mortgages Direct, securing a mortgage as a contractor or self-employed individual is no longer daunting. Enjoy the flexibility, competitive rates, and personalized service that Clydesdale Bank offers. Take the first step towards your dream home and contact Contractor Mortgages Direct today (insert contact details) to discuss your contractor mortgage options. Don't let the limitations of traditional lenders hold you back - discover the possibilities with Clydesdale Bank.