Nationwide is prepared to lend to applicants with the following employment status:
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Employed
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Self Employed
A self employed applicant may be:
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a sole trader
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a partner in a business
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a director that owns more than 20% of the company
If a client has more than a 20% share holding in the business they work for we will treat them as self employed and we require an accountant's certificate.
If a client has a 20% or less share holding, we will treat them as 'employed' and use their P60 and latest payslip to confirm income as appropriate.
If a client has a 20% or less share holding and P60 and payslip income is not enough to support the loan requested we will treat them as self employed, for example where we need to take account of any dividend income.
We will only accept an accountant's certificate where applicants have at least two full years' accounts.
If your client is an existing Nationwide borrower and cannot meet the required criteria, please contact your service centre to see if the application can be referred to our senior underwriters.
Where your client has been self employed for less than two years, but is working as part of a business that has been established for longer, refer to your service centre to check if the application can be referred to our senior underwriters.
Accountant's certificate must be in our format and will be applied for by us, please supply the accountant's name and fax number.
Fixed Term Contracts
Where a job is only for a set period, although the contract may be renewed or extended. You should always check if your client is on a fixed term contract. If they are, please provide the following information with the application which the mortgage approver will use to assess the likelihood of continued further employment.
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length of time with current employer;
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if the contract has been renewed before;
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remaining term of the current contract;
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if the current contract is likely to be renewed and, if so, for how long;
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the prospects of obtaining alternative employment in the same type of work at a similar salary
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whether the contract is connected to a specific project
At least a 12 month track record of working on this basis is required.
Fixed Term Contracts/Self Employed for Tax Purposes
Some workers with specialist skills are engaged exclusively by one employer on a fixed term contract. Some obtain contracts through an agency and can appear self-employed, but in reality aren't and their income can be proved by way of an employers reference obtained from the agency, to confirm that they have been working on this basis for the last twelve months. Others are genuinely self-employed so can prove their income by way of an Accountant's Certificate. In either scenario the applicant should be treated as self-employed.
Probationary Employment
Proof of income for applicants who are in a probationary period can be from a Letter of Appointment or an employer's reference.
Sub Contractors
Where an applicant is a sub contractor and is working as a limited company, treat them as self-employed.
Where an applicant is a sub contractor and is working as an individual the company to which they are contracted will pay tax and National Insurance as an employer, so payslips should be available. An employer's reference will be required if a P60 is not available.
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