NatWest is one of the big four High Street lenders, NatWest will consider contractors operating through their limited company on their gross contract value, when we say day rate contractors, you can take to include contractors who are paid on an hourly rate as well.
NatWest will only consider applications from contractors operating through their own limited company, and not umbrella company contractors.
NatWest is a great contractor friendly lender with a dynamic approach, the underwriters are superb, and each of our team have an excellent rapport with the decision makers allowing discretion where needed.
NatWest is a lender who is willing to lend and take an individual view on client’s circumstances, additionalionally we have provided more information regarding first time buyer mortgages.
NatWest's policy towards day rate contractors
NatWest has a minimum qualifier for contractors, which is that the gross contract value needs to be £75,000, so this equates to £327 per day, based upon 46 weeks.
NatWest also considers contractors on an hourly rate, subject to the contract reaching the minimum stipulation of £75,000.
NatWest will want to see a contract for 12 months as a whole, so if you have been contracting for 7 months, they will want you to have a contract for an additional 5 months going forward, or 9 months with 3 months remaining. Total 12 months.
NatWest will want to see some time remaining on your contract, like 4 weeks, you do not need a lengthy 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.
NatWest will only consider contractors operating through their own limited companies.
NatWest Contractor Mortgages will also only consider the cumulative shareholding of the limited company, so if you hold 75% shareholding, they will only utilise the 75% of your gross contract value.
NatWest do not like gaps in employment history, obviously, having holiday or taking a few weeks out is not an issue, but if you have several months off in the 12 months, then it may be better to look at one of our other contractor friendly lenders. NatWest will consider contractor mortgage applications with up to 6 weeks between contract, so pretty generous.
NatWest will calculate your gross contract value in the following way:
NatWest 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 day rate.
For example, if on a day rate or hourly rate, then
£327 per day x 5 days x 46 weeks = £75,210 gross contract value
£43.50 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £75,037.50 gross contract value
In order to package your application, we will require the following
- Proof of ID such as a Passport or DVLA Licence
- 2 Proofs 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 contracting history
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months personal and business bank statements
- If you are purchasing, then we will require proof of deposit such as a bank statement to show funds or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required for this particular lender
Having everything up front makes our job easier and ensures that we can present your application to the NatWest contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
With a wealth of experience, why would you want to risk your mortgage application, we are contractor mortgage experts, and will ensure your application is handled with the care it deserves to ensure success first time.
