Last year, looking at ever growing demand for Contractors and after observing a boost in contractor and freelancer marketplace, Nationwide opened doors for contractors looking for mortgages, and started widening their mortgage lending criteria on Nationwide Contractor Mortgages to support the contractor and freelancer community.
This was no doubt a welcome news for UK Contractors, as one more contractor friendly mortgage lender was added, giving contractors one more option to choose from. Nationwide are considered to be one of the best ones when it comes to High Street banks and they are also one of the largest building society in the UK. They were one of the few lenders who did not consider contractors as high risk.
Having said that, Nationwide still needs to work upon and extend their lending criteria, because it is still unclear as to how they assess Limited Company contractors and Umbrella Company contractors. It is believed that Nationwide will consider individuals with less than 12 month professional experience.
On Nationwide's website, it is mentioned that "Directors of Limited Companies will need last 2 years income and they would be using lower of the most recent year's Salary and Dividends". Contractors will need to prove and get their income verified through an Accountant's reference certificate or through HMRC Tax Assessment Forms. The latest years end cannot be more than 18 months ago. Drafts and projections are not acceptable and if the last accounting period is greater than 12 months, the income figures will be annualised.
We believe that Nationwide Contractor Mortgages is best for Contractors who are able to prove their income through Nationwide's Mortgage Lending Criteria mentioned above. With recent changes, however, Nationwide is gaining attention and contractors are approaching Nationwide for their mortgage requirements.
You can also try our contractor mortgage calculator to find out how much you can borrow.
If you need help with Nationwide Contractor Mortgages, please get in touch with us. Other contractor friendly lenders you may want to look at: Contractor Mortgages from Halifax and Clydesdale Bank Contractor Mortgages.