The change applies for those contractors with more than one year’s contractor experience and have had their contract renewed at least once.
The lender said it will also consider applications from contractors with less than one year’s contractor experience, providing the LTV is a maximum of 70 per cent.
For these self-employed contractors, Clydesdale Bank will now use the current contract rate for income calculation, multiplied by 46 weeks.
Greater range of customers
Clydesdale Bank said it will continue to accept applications from self-employed contractors working in any sector, subject to a minimum calculated income of £50,000 a year, with a minimum of two years’ experience employed or contracting in same the industry.
Gaps between contracts of up to six weeks are acceptable with longer gaps requiring referral to the lender.
Sarah Green, head of intermediary mortgages at the lender (pictured) added: “We’re delighted to announce these positive changes today which will not just make us easier to do business with but will also allow us to help a greater range of customers.
“The improvements follow engagement with partners throughout the broker community and focus on what is most important to our customers, so we’re confident the changes will have a positive impact in the market.”
