The Intermediary – July 2025 - Flipbook - Page 60
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SUFFOLK BS
C AS E ON E
Contractor with
multiple short-term
assignments
n IT contractor – who has worked on
multiple six-month contracts the past
three years – earns approximately £85,000
a year, with day rates fluctuating between
contracts. They want to purchase a £425,000
property with a 10% deposit.
However, there are gaps of a few weeks between
previous assignments, which have created red
flags for lenders looking for continuity.
While their earnings are strong, the contractor
wants to use a combination of limited company
dividends and retained profits, thus leading to
complications around how income is assessed.
Some underwriters have been unwilling to
consider projected income or day rate calculations
without a current contract in place.
A
WEST ONE LOANS
We offer mortgages for self-employed contractors
(incl. IR35) provided the right documentation
is submitted. Minor gaps in continuity are
usually acceptable.
However, we require a current contract to be
in place and will calculate affordability based on
a five-day work week over 48 weeks a year. It is
likely that we’d be able to assist once the applicant
has a contract in place.
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The Intermediary | July 2025
With a healthy salary and a 10% deposit, you can
see the strengths in this case. We only need a
two-year history. A 90% loan-to-value (LTV) with a
contractor income is also acceptable to us, though
we would require a current contract to be in place.
We would first look to use the contract income at
day rate x5 for 46 weeks per annum. If the contract
work is sporadic, or there are significant breaks
inbetween, then we may need to consider net
profit after tax and salary, or salary plus dividends.
BUCKINGHAMSHIRE BS
With the applicant working as a contactor for over
three years we would need to treat them as selfemployed, so we would be looking for two-year
income evidence, of which we would look to take
an average of the last two years.
STAFFORD BS
In this scenario, we would assess the contractor’s
income using their submitted accounts and
SA302s. If their earnings have been consistent, we
can consider a combination of salary and post-tax
profit. Gaps of a few weeks between contracts
wouldn’t be a barrier, provided they’ve maintained
a stable three-year track record. Our approach
supports contractors with varied but reliable
earnings patterns.
TOGETHER
Together could consider this applicant’s income
towards the affordability of their loan; our policy
states we can accept this income type through
self-employed SA302s, looking at the income
