From 13 June, they’ll consider daily rate contractors using their day rate for affordability purposes – and they only require evidence of 12 months’ experience in the same profession as long as they have six months or more left on their current contract.
Kevin Purvey, Director of Intermediaries, says, “With ONS data for the UK labour market in September 2018 showing us that self-employed workers make up nearly 15% of the workforce*. This is a high percentage of people who have chosen a more flexible way of earning an income and we’ve updated our lending policy to reflect that
The criteria for daily rate contractors
- There is a minimum earning requirement of £50k – brokers should calculate their client’s gross earnings by using the calculation ‘day rate x 5 days x 41 weeks’.
- A client will need to show evidence of a minimum of 12 months’ experience in the same line of work, and have a minimum of six months left on their current contract.
- If there is less than six months left on their contract, then evidence of 24 months’ continuous employment in the same line of work will be required.
Kevin says, “If a daily rate contractor doesn’t meet these requirements, we could still lend to them on a self-employed basis, but using our policy for sole traders or directors with 20% or more shares.”
For more information, go to www.coventrybuildingsociety.co.uk.