In 2020, it is predicted that 50% of the full time work force will be contractors and freelancers. Therefore, it comes as no surprise that banks are frequently planning to alter current criteria to accommodate the largely growing sector.
The latest headline announced reveals Nationwide are to widen their lending criteria in an attempt to benefit those who work on fixed-term contracts. Changes in their criteria will allow self-employed contractors to make effective use of day rate income for the purpose of mortgage applications. This will assist contractors to try and secure a mortgage.
Proposed changes to the criteria includes considering individuals with less than 12 months experience. Furthermore, they will no longer require a minimum income providing a more attractive proposition to individuals with low income.
The selection of products available for contractors will include a selection of 2 and 10 year fixed rate deals. For many with smaller deposits, lenders offer options from 75% to 90% loan to value ratio (LTV).
Nationwide is projected to become a very popular option for contractors as they provide market-leading rates and a large variety of products. If you’re a contractor and need help with your finances, then choose Gorilla as your contractor accountant
Here at Gorilla Accounting, our specialist contractor accountants are able to refer you to our customer service driven partner firm who offer contractor mortgages. Gorilla Accounting offer an all-inclusive premium accountancy package including cloud accounting online software for just £85 + VAT per month! To arrange a free trial of this, contact us on 0330 024 0406.
