Skipton Building Society: Contractor-Friendly Mortgage Criteria Explained

Flexible Mortgage Solutions for Contractors from Skipton Building Society

Understanding the unique needs of contractors in the UK, Skipton Building Society has released updated lending criteria designed to make it easier for day rate contractors, supply teachers, zero-hour workers, CIS workers, and those with non-traditional income streams to access mortgage finance. These changes highlight Skipton’s commitment to supporting self-employed professionals and workers with irregular income history.

Key Features of Skipton’s Contractor Mortgage Policy

• Broad Contractor Eligibility: Suitable for individuals with as little as 6 months’ contracting experience in their career (with potential flexibility for less).
• No IR35 Restrictions: Skipton ignores IR35 status, simplifying applications for personal service company (PSC) and umbrella contractors.
• Multiple Income Calculation Methods: Contractors earning over £50,000 calculated as day rate x 5 x 48; under £50,000 based on latest payslip x 12.
• Umbrella Contractors: Applications use the gross contract day rate, not payslips, reducing documentation requirements.
• Gaps in Employment Allowed: Acceptable with rationale and confirmation that no debt was taken to cover living costs.
• Multiple Concurrent Contracts: 100% of income accepted if working up to 40 hours per week, or 50% of a second contract if total hours do not exceed 60 per week.

Special Cases: CIS, Zero Hour, TV/Film, and Locum Workers

• CIS Workers: 13-week average income multiplied by 48 for annual income calculation.
• Zero Hour/Supply Teachers/Locums: 3-month average income multiplied by 12.
• TV/Film Industry Applicants: Flexibility for gaps and mixed employment/self-employment; will use last 3 months’ earnings if no day rate is available.

Borrower Scenarios: Who Stands to Benefit?

• Returning Contractors: Contractors with a two-year history who’ve taken a break (e.g., for travel) and have started a new contract can still qualify.
• Recently Changed Pay Structures: Switching from contracting to umbrella, limited company, or fixed-term PAYE just a month ago is accepted.
• Short Contract Extensions: Even with just one week left on a contract, a letter confirming an extension is sufficient to meet lending criteria.
• Multiple Contracts: Applicants running several contracts simultaneously (up to 60 hours per week total) can use income from all towards affordability.

Why Choose Skipton Building Society for Contractor Mortgages?

• Contractor-Friendly Approach: In-depth understanding of the contractor market and willingness to assess unique scenarios.
• Simplified Documentation: Emphasis on contracts and day rates, not complex payslip histories or rigid employment models.
• Accepts Employment Gaps: Provided there’s a clear reason and no borrowing to cover the break, gaps are not a barrier.
• Flexible with Multiple Incomes: Suits those with portfolio careers, multiple roles or varying contracts.

Get Expert Mortgage Advice for Contractors

If you’re a contractor, locum, or supply teacher seeking a mortgage, Skipton’s flexible criteria could make securing a home loan more achievable. Every contractor’s situation is unique—reach out to our expert mortgage advisors for guidance tailored to your circumstances, and get the confidence you need to move forward with your property plans.

Ready to discuss your mortgage options? Contact our team today for contractor-focused mortgage advice.

FAQs: Skipton Contractor Mortgage Options

• Who qualifies for a Skipton contractor mortgage?
  Contractors or self-employed with at least 6 months’ contracting experience at any point, plus two years’ industry history. Special exceptions may apply—speak to an advisor for details.
• How does Skipton calculate my income for affordability?
  Generally, annual income is computed as day rate x 5 x 48 (for over £50k earners) or latest monthly payslip x 12 (under £50k), with similar calculations for CIS and zero-hours workers.
• Can I apply with multiple concurrent contracts?
  Yes, all income can be included if working up to 40 hours weekly, or 50% from a second contract when working between 40 and 60 hours per week total.
• What if I have a gap in my contracting work?
  Employment gaps are accepted if you provide a rationale and confirm you did not borrow money to cover living costs during the break.
• How do I get started?
  Contact our mortgage specialists for contractor-specific assessment, or use the web chat on our website to discuss your eligibility and next steps.