Virgin Money is a great High Street lender, Virgin Money Contractor Mortgages department will consider and accept applications from day rate contractors and hourly rate contractors potentially from Day 1.
Virgin Money will consider applications from contractors operating through their own limited company, and umbrella company contractors.
Virgin Money is a great contractor friendly lender with a dynamic approach, the underwriters are superb, with a good mandate for allowing discretions.
Virgin Money is a lender who is willing to lend and take an individual view on client’s circumstances, they will only lend to contractors with
Virgin Money policy towards day rate contractors is as follows:
- Virgin Money states the contract value needs to be £50,000, that is £217 per day. If the contractor has less than 24 months contracting history
- If the contractor has 24 months or more, then there is no minimum day rate required.
- Virgin Money also considers contractors on an hourly rate
- Virgin Money will want to ensure that you have been in the same line of work for 24 months, this is compulsory.
- This lender will also only accept applications from contractors with 3 months remaining, or extension if you can get this.
- Virgin Money no longer have an arduous contractor policy. In short they can look to accept day 1 contractors, which is a major breakthrough.
- Virgin Money do not like big gaps in employment history, obviously, having 6 weeks between contracts is fine, if longer we can discuss this with them.
- Virgin Money will calculate your gross contract value in the following way:
- Virgin Money tend to take your day rate then multiply by 5 days then multiply this by 46 weeks to reach the gross contract value.
- They will not utilise the average of the previous 2 years to reach an average day rate.
For example, if on a day rate or hourly rate:
- £327 per day x 5 days x 46 weeks = £75,210 gross contract value
- £43.50 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £75,037.50 gross contract value
- 4.49x borrowing, and 4x over £500,000
In order to package your application, we will require:
- Proof of ID such as Passport or DVLA Licence
- Proof of Address such as Utility Bill and Council Tax Bill
- Current Contract with the Terms and Conditions, needs to be signed and dated
- Previous contract to evidence 12 months contracting history, or employment history for the preceding 24 months if we do not have the 12 months history.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- Signed Declaration and Direct Debit Mandate, we will provide you with this.
- 3 months personal and business bank statements
- If purchasing, then we will require proof of deposit or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required.
Having everything up front makes our job easier and ensures that we can present your application to the Virgin Money contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
Why go it alone and risk your mortgage application, let the expert handle your application from packaging to getting the formal mortgage offer from Virgin Money.