The Mortgage Lender (TML) contractor mortgage lending criteria
The Mortgage Lender (TML) is a specialist lender, part of the Shawbrook retail group. It has a well-earned reputation for providing mortgages to contractors who don’t mainstream lender’s moulds. With a focus on affordability and underwriting flexibility, TML offers a wide range of residential and buy-to-let mortgages.
The lender’s underwriters understand the variety of roles that the term ‘contractor’ can cover. As such, they assess each application on its own merits, including applications from foreign nationals.
Contractor lending criteria - key features
TML accepts contractors from all industry sectors and occupations.
The lender has no minimum income requirement. It will also consider limited company contractors working outside IR35.
Underwriters will assess umbrella payroll workers on their contract rate, as well as day-rate contractors.
The umbrella applicant will need to provide payslips to evidence income, as well as a copy of the contract itself.
Contract history
With TML, the time a contractor has served will help determine their mortgage criteria, including the loan-to-value ratio.
Contractors with 12 months’ contracting experience can borrow up to 90% LTV (10% deposit). If less than three months remain on the contract, TML may ask for an extension or renewal. The contractor would also need to provide payslips, invoices, and two months of personal bank statements to support the application.
Contractors with at least three months’ experience can access 75% LTV mortgages (25% deposit).
They must, however, have a contract renewal ready and have 12 months’ history working in the industry they’re contracting in at time of application.
To get a baseline ‘annualised’ figure for mortgage affordability, TML uses the calculation:
- Day rate (£) x 5 days (per week) x 48 weeks (per year)
Underwriters will allow gaps of up to six weeks between contracts during the last 12 months. But, as they use common sense, they can be flexible if there’s been a holiday or life event over the qualifying period.
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CIS Workers - Income criteria
TML has a robust and generous policy for CIS workers. The lender treats CIS contractors as employed, not self-employed, as many other lenders do. That means underwriters will accept applicants with only three months’ experience.
To evidence their income, CIS contractors will need to provide their last two months’ payslips/dockets and corresponding bank statements. Underwriters will then annualise their income using the average of those payslips x 52 weeks.
TML reserve the right to switch to self-employed/SA302 evidence if:
- The contractor’s weekly pay fluctuates
- Payments into their bank accounts don’t match payslips
- The end user frequently changes
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Income criteria for temp, agency and zero-hours contract workers
Temp, agency or zero-hours contractors must have been in continuous contracts for 12 months. They must also have worked in their current role for at least three months.
Over the last 12 months, they cannot have gaps between contracts of more than six weeks. To verify their income, they will need to provide copies of their last three months’ payslips. The underwriter may also ask to see their latest P60 as income evidence.
Underwriters will consider pre-application for workers in these sectors on a case-by-case basis.
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.
The Mortgage Lender in a nutshell
TML’s ability to work with foreign nationals makes it one of the few adverse lenders to accommodate this demographic.
Working with CIS workers as employees and contractors with varying experience makes TML a standout option for contractors who may fall foul of mainstream lenders’ criteria.
Its competitive income calculation and willingness to assess applications individually provide additional flexibility for contractors with unique needs.
To begin your enquiry, talk to our experienced advisors today.
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