National Westminster Bank, usually referred to as NatWest, is one of the major UK banks. Established in 1968 by the merger of National Provincial and Westminster Bank. NatWest has a 12.5 per cent share of the UK mortgage market, with £147.5bn of outstanding mortgages last year.

If you need a contractor mortgages, and subject to Terms & Conditions, NatWest could be one option that we, as a whole of market mortgage broker, could consider dependent on your personal circumstances, although you will need a minimum income of £75,000 per annum. NatWest says that in order to reduce risk, it requires plenty of evidence of a solid income stream in the past, now, and in the future. However, if you meet these criteria, NatWest can provide a contractor mortgages on competitive terms.

What criteria is a NatWest contractor mortgage assessed under?

For PAYE contract workers, NatWest requires one year’s evidence of history of earnings. This could take the form of two six-month contracts or four three-month contracts. The lender also wants to see evidence of a contract in place for a minimum of a further three to six months.

For self-employed contractors earning more than £75,000 per annum, NatWest will calculate your income as your average weekly contract income multiplied by 46, providing you can provide evidence of the following:

Self employed Contractors

Last three months’ consecutive personal bank statements (although this is not necessary if your main account is with NatWest or RBS)

If you have significant business expenses – three months’ consecutive bank statements (personal or business) detailing these

A copy of your contract, encompassing 12 months, with a minimum of six months’ contract(s) already completed immediately preceding the date of application

You have taken no more than a six-week break between contracts in that 12-month period Your tax position is paid and up to date.

If you are a day-rate self-employed contractor operating via a limited company. Then NatWest may also be able to lend to you as long as you are a single applicant owning 100 per cent of the company, or it is a joint application. Where one of the applicants owns 100 per cent of the company.

These may include car/finance loans; extended travel and accommodation costs; training courses; professional indemnity insurance and partner/spouse salaries.

How AWS can help

AWS helps many day-rate contractors find the right mortgage for their circumstance on competitive terms. We are whole-of-market brokers and we have a good understanding of contractor mortgages. Please get in touch for more information.