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TSB targeting contractors with new mortgage lending policy

Aaron Strutt Image

TSB has launched into the contractor mortgage market.

The bank is now offering mortgages to day-rate contractors, sub-contractors, fixed/short term contractors, agency workers, construction industry scheme workers and contractors on probation.

Contractors will need a minimum income of £50,000 from their average day rate and have a 12 months contract history.

Applicants will need to prove that they have not had any gaps exceeding six weeks and have at least three months remaining on the contract. If they have less than three months remaining, they will need a future contract showing a minimum of three months of future employment.

Aaron Strutt, product director at Trinity Financial, says: “To calculate the maximum mortgage loan size TSB uses the average day rate for the last 12 months and then multiplies it by five days and then by 46 weeks. If you are on a rolling contract the current employer or agency must provide evidence that the contract is still valid.” 

Call Trinity Financial on 020 7016 0790 to secure a mortgage

TSB for Intermediaries does not charge a premium for its new contractor mortgages and the rates are the same of its standard deals.

TSB's lowest fixed rate is 1.49% until 31 May 2022 and it is available for borrowers with a 40% deposit. After the fixed-rate, the mortgage reverts to 4.24%. The overall cost for comparison is 3.9% APRC. There is a £995 arrangement fee and the maximum loan size is £1 million.

The banks most competitively priced five-year fixed rate is 1.49% - the same as the two-year mortgage. It also has a £995 arrangement fee and the overall costs for comparison is 3.3% APRC.


Trinity Financial has access to at least 50 banks and building societies offering contractor worker mortgages.

Some of the biggest lenders providing contractor mortgages include Barclays for Intermediaries, NatWest for Intermediaries and Nationwide for Intermediaries.

Halifax for Intermediaries has one of the most attractive contractor mortgage policies providing the applicants has had current continuous employment of 12 months or more with six months of the contract remaining.

Borrowers will be treated as self-employed if they pay their own tax or sub-contract to more than one company. Acceptable will need to earn £500 per day or £75,000 per annum and they will need to provide a copy of their contract required. To calculate the maximum loan size the day rate is multiplied by five and then by 48 weeks.

As seen in
sunday times telegraph financial times bbc news the express the times
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