Newbury Building Society contractor mortgage lending criteria
Newbury Building Society underwrites all mortgage applications on a manual basis. This means the underwriting team assesses every single applicant on merit.
This means neither industry nor income inhibits contractors from applying. Newbury welcomes all contractors; its underwriters even use contract day rates to work out mortgage affordability.
Lending criteria for fixed-term contractors
Newbury welcomes all professional contractors. By professional, the building society means IT contractors, teachers, doctors, accountants etc.
The lender has little restriction on payment structure, either. Newbury accepts:
- Limited company contractors
- Umbrella payroll employees
- Sole traders
- CIS workers (see below for CIS workers’ criteria)
Contract guidlines
Contractors must have three months remaining on their current contract at time of application. And, ideally, the contractor should have gaps of no more than (a generous) three months between contracts over the last 12 months.
Newbury welcomes day-one contractors, providing they have a proven record in the same industry.
Compare the latest mortgage deals from Newbury Building Society
Newbury Building Society affordability assessment
Underwriters use the income outlined in the contract to assess affordability. If the contract doesn’t stipulate, underwriters assume a five-day working week. The calculation, unless the contract states otherwise, is:
- Day rate (£)* x 5 days (per week) x 48 weeks (per year)
Newbury then multiplies the total of that calculation by their mortgage multiplier to determine how much a contractor can borrow.
Where applicable, the underwriting team will use payslips to verify income.
Foreign currency
Newbury Building Society is flexible with foreign currency contractors. The lender accepts a wide range of foreign income types, including dollars, euros, dirhams or francs.
Find out how much you can borrow
Criteria for the Construction Industry Scheme
CIS (Construction Industry Scheme) applicants must have at least 12 months’ history as a CIS contractor at time of application. The Scheme they’re working on must also have HMRC approval.
Underwriters work out CIS contractors’ affordability on their annualised contract value up to a maximum of 48 weeks.
Criteria for zero hour contractors
Newbury will consider applications from zero-hour contractors.
The contractor must have a track record of consistent earnings over a period of at least 24 months.
Talk to the contractor mortgage experts
As the leading mortgage broker for contractors and the flexible labour workforce, you’ll be in safe hands with Freelancer Financials.
Freelancer Financials is an independent broker with access to every mortgage from every lender, meaning we can offer truly unbiased advice and find you the best deal for your unique circumstances.
Established more than 20 years ago, we have a proven track record of arranging over 30,000 mortgages for contractors, umbrella company workers, CIS subcontractors and the self-employed.
Our specialist broking team will support you throughout your mortgage journey, and we have nearly 1000 5-star reviews from clients to prove it. Whatever your mortgage needs, it’s time to talk to the experts.
Newbury in a nutshell
The lender is strict on credit. If you have adverse credit, you need to look at another provider. Also, as Newbury underwrites each application manually, it may take a little longer to process.
But there are many other excellent reasons why Newbury Building Society might be your best option:
- Three months gaps between contracts
- Up to 48 weeks in the affordability assessment
- No limits on industry or income
- Excellent with foreign currencies
To begin your enquiry, talk to our experienced advisors today.
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