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Skipton Building Society Lending Criteria

Skipton Building Society, committed to providing flexible and accessible mortgage solutions, maintains a set of lending criteria to ensure a thorough assessment of applicants. This guide outlines the criteria related to age limits, specific professions like CIS workers and contractors, credit history, and self-employed individuals.

Skipton Mortgages Age Limits:

Skipton Building Society establishes a standard minimum age requirement of 18 years at the beginning of the mortgage term. However, for the Track Record mortgage, the minimum age at the time of application is 21 years.

While the maximum age at the end of the term is set at 75 years for residential lending, additional considerations come into play when the borrower crosses age 70 or their elected retirement age. In such cases, evidence of retirement income, such as pensions or investment income, is required to assess the impact on affordability.

Skipton Mortgages for CIS Workers:

Skipton Mortgages for CIS Workers or Construction Industry Scheme workers, the following documents are required:

  1. Minimum of 2 years in the chosen profession.
  2. Copy of the current contract.
  3. Copy of the latest month’s bank statement.
  4. 3 months’ invoices or payslips.

Income calculation involves averaging the last three months’ payments with no specific minimum income requirement. Up to two contracts running concurrently, totalling a maximum of 40 hours per week will be considered.

Skipton Mortgages for Contractors (Self-Employed):

The lending criteria for self-employed contractors’ mortgages depend on their earnings.

Contractor with Earnings £50k and Above:

  1. Minimum of 2 years in the chosen profession.
  2. Minimum of 6 months contract history.
  3. Minimum income of £50,000 (using daily rate).
  4. Minimum of 1 month remaining on the current contract.

Documents required include a CV, current contract, previous contracts if necessary, and the latest month’s personal or business bank statement. Income calculation involves the daily contract rate multiplied by 5 and then by 48 (weeks).

Contractor with Earnings Less than £50k: Similar criteria apply to the income calculation based on the latest month’s payslips or invoices.

Skipton Mortgages for Locum Medical Professionals, Supply Teachers, and Zero Hours Contracts:

Similar to CIS workers, these professionals require a minimum of 2 years in their chosen profession. The documentation includes the current contract, the latest month’s bank statement, and three months’ invoices or payslips. The income is calculated as an average of the last three months’ payments, with no specific minimum income requirement. Up to two contracts running concurrently, up to 40 hours per week, will be considered.

Credit Search / History:

While not specified in detail, credit history is undoubtedly a crucial factor in the lending decision. Skipton will likely assess the applicant’s creditworthiness through a credit search.

Self Employed:

Skipton Building Society caters to various self-employed individuals, including those operating as limited companies, sole traders, partners in a partnership, limited liability partnerships, and contractors or consultants.

Limited Companies: Income evidence can be in the form of a fully completed Accountant Certificate and 3 months’ business bank statements or the latest 2 years’ full accounts and 3 months’ business bank statements. The income calculation involves an average of the latest 2 years’ dividends and remuneration.

Sole Trader or Partner in a Partnership: Similar documentation requirements apply, with income calculation based on the average of the latest 2 years’ net profit.

Limited Liability Partnership: Documentation requirements are akin to limited companies, with income calculation based on the average of the latest 2 years’ share of profit.

Rental Income:

Skipton accepts 100% of the profit from UK Land & Property, as shown on the latest SA302. To evidence this, the latest 2 years SA302s and the latest month’s evidence of rental income (e.g., bank statement or invoice from the letting agent) are required.

Points of Note for All Self-Employed Applications:

  • Government support scheme/grant impact on net profit will be considered.
  • Only finalised full accounts will be accepted.
  • All accounts should be completed by a qualified Accountant.
  • Accounts/SA302s must be dated within 18 months of the application.
  • Only SA302s marked as “100% complete/submitted” will be accepted.
  • All income must be received in £Sterling.

In conclusion, every application to Skipton Building Society undergoes a thorough assessment by an underwriter, and their decision is deemed final. Applicants are encouraged to adhere to the specific documentation requirements and criteria outlined above to facilitate a smooth mortgage application process. Contact MortgageTek for advice and guidance in Skipton building society lending criteria and for successful application.