For contractors earning more than £75,000 a year, Natwest will now calculate income as the average weekly contract income multiplied by 46.
This new calculation will be made on that basis that customers have:
- received or will receive sufficient income from one or more contracts over a 12-month period that covers the date of application;
- received at least six months’ historic income from one or more contracts immediately preceding the date of application, and;
- have had no more than a six week break between contracts in the 12-month period.
Mark Bullard, head of sales, Natwest Intermediary Solutions, said: “Employment patterns have changed significantly over the past few years with many more people opting for contract work instead of permanent employment. To reflect that many contractors are high earners, we have changed our standpoint on assessing their income to make it more straightforward for those whose income exceeds £75,000 a year. We believe that this will enable brokers to help more contractors with their mortgage needs.”
For maintenance payments, Natwest will now allow income from family-based or non-court ordered maintenance and child maintenance. This will be accepted provided that payments have been in place for at least six months and are expected to continue at the current level for the foreseeable future, taking into account the age of children.