Clydesdale Bank contractor morgages

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 Clydesdale Bank Contractor Mortgages:

Are you a contractor seeking a mortgage tailored to your unique financial situation? Look no further than Clydesdale Bank, a seasoned player in the contractor mortgage market. In sync with the needs and nuances of contractors, Clydesdale stands out as an outstanding leader, offering a range of benefits.

Key Features of Clydesdale Bank Contractor Mortgages:

Flexible Lending Criteria:

Clydesdale Bank is renowned for its flexible lending criteria, recognizing the distinctive financial patterns of contractors. Unlike many lenders, Clydesdale employs a common-sense approach to manual underwriting, making it easier to secure mortgages for quality cases.

Excellent Mortgage Products:

The bank provides a suite of excellent mortgage products, including offset mortgages with no early repayment charges. This variety ensures that contractors can choose the mortgage that best aligns with their financial goals.

Competitive Interest Rates:

Clydesdale Bank offers competitive interest rates, enhancing the affordability of mortgages for contractors. This financial institution understands the importance of providing cost-effective solutions to its clientele.

Understanding Limited Company Structures:

One standout factor is Clydesdale’s understanding of limited company structures. Contractors often opt for tax-efficient income withdrawal methods, such as low salary and dividends. Clydesdale’s underwriters grasp these intricacies, ensuring that contractors don’t have to compromise on prime-rate mortgages for tax efficiency.

Lending Criteria for Clydesdale Bank Mortgages for Contractors:

If you’re considering Clydesdale for your mortgage needs, here are the key criteria to keep in mind:

  • Clydesdale accepts applications from contractors across various sectors, not limited to IT.
  • To qualify, calculated income must exceed £50,000 per annum.
  • Contract renewal is a prerequisite, with at least one renewal expected.
  • Annualized income is calculated using the current and previous two years’ contracts.
  • The income calculation involves taking an average weekly rate from the two years and multiplying it by 46.
  • Pro-rata calculations are applied for contracts of less than 35 hours per week.
  • Clydesdale does not accept offshore income structures.
  • Less than two years of contract history may be considered if the Loan-to-Value (LTV) is below 70%.
  • A comprehensive application includes both current and previous contracts, the latest three months’ bank statements, a CV demonstrating at least two years of contracting, and income details covering the same period.
  • The CV should showcase continuous contracting, with breaks between contracts not exceeding six weeks.
  • A minimum of 4-6 weeks remaining on a contract at the time of application is expected. Evidence of contract renewal or extension is necessary if less time remains.

Navigating the Application Process:

If you’re uncertain about meeting Clydesdale’s criteria, worry not. Exceptional cases can often be negotiated with strong supporting evidence. The close relationship between our MortaggeTek and Clydesdale’s bank enables us to discuss and potentially secure exceptions for deserving cases.

Discussing your case with  underwriters before we make an official application can lead to a “decision in principle.” This proactive approach streamlines the process and minimizes the risk of a failed application.

Why Choose a MortgageTek  as your Mortgage Broker: While approaching High Street lenders directly may seem tempting, it’s crucial to note that failed searches can leave lasting impacts on your credit history. Higher interest rates or even a rejected mortgage offer could be the consequences.

A mortgage broker, especially one well-versed in contractor finances, can navigate your application to a lender like Clydesdale. By understanding your unique circumstances, we aim to secure the mortgage your contract earnings truly deserve.

Explore Clydesdale Bank’s competitive rates on our best buy tables. Don’t leave your mortgage to chance—opt for a lender who understands the intricacies of contractor finances.