Principality Building Society: Your Path to Homeownership Success
Why Contractors Choose Principality Building Society
Principality Building Society is an excellent choice for contractors due to its deep understanding of the complexities of contractor income. They offer flexible lending criteria that consider various income structures, such as day rates and limited company accounts. With competitive mortgage rates and a personalised service approach, Principality ensures that contractors, whether new or experienced, receive tailored support throughout the mortgage process. Their experience in working with contractors leads to smoother approvals and a better overall experience, making them a standout option in the mortgage market for contractors seeking reliable and customised solutions.
Essential Checklist for Securing a Principality Building Society Contractor Mortgage
If Principality Building Society seems like the right fit, we at Contractor Mortgage Solutions can assist you with your application. Here’s what you need to know:
Contract Requirements
Principality caters specifically to day rate contractors, requiring a minimum of 24 months of industry experience. Your current contract should have at least six months remaining. Principality calculates your contract day rate income over a 48-week timeframe and only accepts income in domestic currency.
Income and Currency
To qualify, your minimum annual income must be £50,000, which equates to a minimum contract day rate of £217.39. Only income in domestic currency is considered.
Documentation for Limited Company Contractors
You will need to provide contracts covering the past 12 months, with several contracts accepted. You’ll also need to submit your limited company accounts as part of the documentation.
Documentation For Umbrella Contractors
Umbrella contractors should prepare payslips, P60s, and relevant contracts from the past 12 months.
Documentation for Payee Contractors
3 months payslips
Contracts Gaps and Earnings
Principality prefers a continuous work history, so be prepared to explain any gaps in your contracts over the previous year. Providing valid reasons for these gaps can help smooth the application process.
By meeting these criteria, you can benefit from Principality’s quick processing times and secure the mortgage you need.
Partnering with Principality Building Society for Seamless Contractor Mortgages
We work closely with Principality’s senior underwriters to make your mortgage application fast and straightforward. Our expertise allows us to submit your application quickly and accurately, often securing a mortgage in principle within 24 hours. The full application process usually takes about three days, with completion in 2 to 4 weeks.
Principality understands the contracting lifestyle and offers flexible options. If you’re concerned about how a lender will view your income, our friendly team is here to help and guide you through the process.
FAQ’S
How does Principality calculate my income as a day rate contractor?
Principality calculates your income based on your contract day rate, multiplied by the number of days you typically work in a week, and then projected over a 48-week period. This approach ensures a realistic assessment of your annual earnings, accounting for potential gaps between contracts.
What if my current contract has less than six months remaining?
If your current contract has less than six months remaining, it may be difficult to secure a mortgage with Principality. They require at least six months remaining on your current contract to consider your application. However, providing evidence of a strong contracting history and ongoing contract negotiations may help.
Can I include income earned in a foreign currency in my mortgage application?
No, Principality only accepts income in domestic currency for mortgage applications. If you earn income in a foreign currency, you may need to convert it and provide additional documentation to demonstrate your earnings.
What are the credit requirements for a contractor mortgage with Principality?
Principality has strict credit requirements. You must not have any bankruptcies, Individual Voluntary Arrangements (IVAs), or County Court Judgments (CCJs) within the last six years. A clean credit history is essential for approval.