Nationwide opens doors to contractors

As the contractor and freelancer economy is expected to make up 50% of the full time workforce by 2020, it is no wonder why an increasing number of banks and building societies are altering their criteria to accommodate this growing sector.

Contractor mortgage options have this week been extended further, with the news that Nationwide is set to widen their lending criteria, in a move aimed at those working on fixed-term contracts. The UK’s largest building society has over-hauled it’s criteria to allow self-employed contractors to utilise day rate income for mortgage purposes.

Under the new criteria, Nationwide will now consider individuals with less than 12 months experience in their field. In addition, they do not require a minimum income and accept contractors from all sectors, making them a more attractive proposition to those with lower incomes. Contractors could now use the full daily/hourly rate as the basis of their affordability calculations, allowing maximum borrowing.

Their product range includes a selection of attractive 2 and 10 year fixed rate deals, including a 1.49% 2 year fix to 60% loan to value. The lender is also offering options to 75%, 80%, 85% and 90% LTV, appealing to those with smaller deposits.

With market-leading rates and a wide range of products, Nationwide are expected to become a popular choice for many contractors, Taj Kang commented:

“Nationwide participate in ‘Help to Buy’, as well as ‘Right to Buy’, and they offer high Loan-to-Value products, all at competitive rates. With these options now being open to Contractors too, the financial future is looking very bright for Contractors, as more and more lenders open their eyes to the security that is offered by the nation’s non-permanent professionals.”

Contractor Mortgages Made Easy has worked hard to influence a number of lenders, including Nationwide, to rethink their lending criteria and become contractor-friendly. They will continue this work to further increase the number of mortgage options open to the contractor community.

If you would more information about any of the above, or would like to discuss your options with Nationwide, please call CMME on 01489 555 080 to speak to an experienced consultant.

Author: Mark McBurney, Senior Mortgage and Protection Consultant at Contractor Mortgages Made Easy (CMME). CMME is a specialist mortgage brokerage that offers expert advice and bespoke mortgages for contractors.

Meet the author

IPSE
IPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.