Gross income used to determine the maximum level of borrowing

Sub-contractors in long term single employment will be underwritten on an 'employed' basis as long as they can satisfy the following criteria:

  • Minimum six months working with current contractor and two years continuous employment history within a similar industry;
  • Client must be able to demonstrate a consistent level of earnings each month;
  • A reference will be required from their 'employer' confirming their start date, monthly earnings and that the services of your client on a 'sub-contracting' basis will continue for the foreseeable future, so no fixed end date;
  • Our standard product range up to 95% loan to value will apply.

Case study

Mr F worked as an IT consultant and was looking to borrow £200,000 at 85% loan to value.

His wife, was a freelance journalist, but had been self-employed for less than 12 months, which meant her income had to be excluded from our assessment.

Mr F had been previously employed by an IT company for three years, and on their suggestion he had switched to self-employed status eight months earlier, and was now classified as a sub-contractor rather than an 'employee'.

This change of status within the previous 12 months had prevented his estate agency based mortgage consultant from securing a mortgage from a number of high street lenders.

The case was referred to us and we were happy to assist as the client had three years employment history and his 'employer' was able to supply the required reference confirming his total gross earnings to date and the fact they had no reason to believe the relationship would not continue long term.

BDM June 2023

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