Employment Criteria


Employment status
Employed applicants
Self employed applicants


Employment status

Nationwide is prepared to lend to applicants with the following employment status:

  • Employed
  • Self Employed

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Employed Applicants

Fixed Term Contracts

This is 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.

Applicants must have been employed on a fixed term contract basis for a minimum of 12 months. If they have not, they must have at least 24 months remaining on their current contract. The gaps between contracts in the past 12 months can total no more than 12 weeks.

A copy of the current employment contract would be required as proof of income and employment.

Where applicants state that their current contract is unlikely to be renewed, we will consider

  • Length of time with current employer
  • If the contract has been renewed before
  • Remaining term of the current contract
  • If the current contract is likely to be renewed and, if so, for how long
  • The prospects of obtaining alternative employment in the same type of work at a similar salary
  • Whether the contract is connected to a specific project

If your client is employed on a fixed term contract, but invoices the employer via their own Limited Company, they would be treated as self employed

Temporary Workers

Clients working on a temporary contract through an agency are acceptable, provided the agency can complete our employer's reference confirming the applicant has been employed on that basis for a minimum of 12 months.

Probationary Employment

Clients working on a probation period can be considered.

Clients who have been in their job for one month or less

If your client is in their first job and employed for one month or less the following proofs are required:

  • Latest payslip, only basic income can be used.
  • 3 months bank statements^
  • Proof of deposit

^If your client has an existing Nationwide current account or mortgage, there’s no need for you to provide their statement(s) if it’s generated as a case requirement. Simply complete this form, then Scan and Attach it to clear the requirement.

If they have not received their first payslip yet, their open ended employment contract or letter of appointment from the employer can be used instead.

If your client has changed employer and has been employed with the new employer for one month or less the following proofs are required:

  • The latest payslip from their new job, only basic income can be used.
  • The last payslip from their previous employer

If they have not received their first payslip yet, their open ended employment contract or letter of appointment from the employer can be used instead.

An employer's letter* would also be used when your client has:

  • Received a pay rise in their current role which is not reflected in their latest payslip
  • Returned to work following, or is on, a period of parental leave. See our income page for more information.

*An employer's letter is a letter that the applicant has already received from their employer confirming their basic income.

Casual Employment

We do not accept applications from people employed on a casual basis.


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Self Employed Applicants

A self employed applicant may be

Income proof requirements

*If a client has a less than 20% share holding, we will treat them as 'employed' and use their payslip(s) to confirm income as appropriate. If the 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.

For Self Employed applicants a minimum trading period of 2 years is required. For Sole Traders and Partnerships we'll need the last 2 years income and we use the lower of the most recent year's net profit (or share of), or the average of the last 2 years' net profit (or share of) figures. For Directors of Limited Company’s, we'll need the last 2 years income and we use the lower of the most recent year's Salary and Dividends, or the average of the last 2 years' Salary and Dividend figures. This can be confirmed via our Accountant's Certificate or HMRC Tax Assessment Forms (see below). The latest years end cannot be more than 18 months ago. Drafts and projections are not acceptable and if the last accounting period is greater than 12 months, the income figures will be annualised.

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, eg has taken over an established businesss or worked for a family business as an employee and now owns a share of the business, refer to your service centre to check if the application can be referred to our senior underwriters. The most common of these scenarios is where an employed solicitor, doctor, accountant or architect, has recently been invited to become a partner in the firm they work for. In this case, a letter from the Senior Partner, Accountant or Practice Manager is required that:

  • confirms the partnership is well established
  • states the date the applicant became a partner
  • states what their income is expected to be in the 12 months following becoming a partner

Income from applicants who are self employed outside of the UK is unacceptable.

Accountant's Certificates

We will request an Accountant's Certificate for confirmation of income for self employed applicants. The certificate must be in our format and will be applied for by us, please supply the accountant's name and fax number.

All Accountant Certificates must be prepared and signed, with the accountant confirming they have the appropriate professional indemnity cover in place to provide accountancy services.

Please note a Chartered Accountant can't certify their own self employed income.

HMRC Tax Calculation Forms

For your clients who self-assess and submit their tax returns online to HMRC we will require the following:

  • the latest two years Tax Calculations
  • the corresponding two years HMRC Tax Year Overviews

For details of how your client can obtain these online click here

For your clients who self assess and submit paper based tax returns to HMRC the following is required:

  • the latest two years Tax Calculations
  • the corresponding two years HMRC Tax Year Overviews
  • HMRC will automatically send a paper copy of the Tax Calculation to your client after the tax return has been processed by HMRC, however they will not automatically send the Tax Year Overviews, these will need to be requested seperately.

The end of the latest financial period must not be more than 18 months old.

For clients who are unable to access their online account or do not have the paper copy of the tax calculation your client will need to request from the HMRC the following:

  • the latest two years Tax Calculations
  • the corresponding two years HMRC Tax Year Overviews

When contacting HMRC your client must ensure they ask for both of the above.

Commercial software Tax Calculations produced by Accountants in conjunction with the HMRC Online Tax Year Overview, are also acceptable.

A guide to our HMRC Tax Calculation and Tax Year Overview requirements.

Fixed Term Contractors

Where an applicant is a Fixed Term Contractor, or uses a Payroll Solution / Umbrella Company and their employer / Payroll Solution / Umbrella Company deducts full PAYE tax and National Insurance, please refer to Employed Fixed Term Contracts.

Where an applicant is a Fixed Term Contractor and has been trading on a self employed basis for two or more years, their income can be considered in either of the following ways:

  • as self employed, assessing the last two years income using 100% of either; the lower of the most recent year, or the average of the last 2 years figures, or
  • as employed, where we'll use 80%* of the income confirmed by the current employment contract and subject to the applicant being keyed as Employed on a Fixed Term Contract

Where an applicant is a Fixed Term Contractor, but has been trading on a self employed basis for less than two years, income can be considered subject to:

  • the applicant being a Fixed Term Contractor for at least 12 months, or, if less than 12 months having at least 24 months remaining on their current contract, and
  • the applicant being keyed as Employed on a Fixed Term Contract where we'll use 80%* of the income as confirmed on the applicant’s latest contract.

*The full amount of income stated on the contract must be keyed, we'll use 80% of this which is to take into account periods where the Fixed Term Contract income may not be payable.

In addition, the following requirements are applicable for cases where a self employed Fixed Term Contractor has a limited company, but chooses to be treated as employed:

Sole application:

  • Where the Fixed Term Contractor's limited company is in more than the sole applicants name, the case may only proceed on a self employed basis with income verified by an Accountants Certificate or HMRC documents. The applicant must have been self employed for a minimum of 2 years.

Joint application:

  • Where the Fixed Term Contractor’s limited company is in their sole name, income from their latest contract can be used.
  • Where the Fixed Term Contractor’s limited company is in the joint names of both applicants, income from their latest contract can be used, provided no other income from the limited company is used for the second applicant.

Where the Fixed Term Contractor’s limited company is in more than one name and the names don't exactly match the application then the relevant applicant(s) can only proceed on a self employed basis with income verified by an Accountants Certificate or HMRC documents. The applicant(s) must have been self employed for a minimum of 2 years.

For example, for a joint remortgage application where the Fixed Term Contractor's limited company is in the names of both applicants and a third person, the case may only proceed with the Fixed Term Contractor keyed as self employed.

Please note, there is no requirement to provide details of the Fixed Term Contractor’s limited company unless requested by Nationwide.

Sub Contractors who invoice their employer through their own Limited Company or as a Sole Trader/Partnership.

Where an applicant is a Sub Contractor and is working via their own limited company partnership, as a sole trader or as an individual with only the basic rate of tax deducted are treated as self employed.

Where an applicant is a Sub Contractor, or uses a Payroll Solution / Umbrella Company and their employer / Payroll Solution / Umbrella Company deducts full PAYE tax and National Insurance, please refer to Employed Fixed Term Contracts.

Foster Carers

A letter from the agency or body that places the child confirming the total income paid for the last 2 years and that the income is likely to continue at the same level for the forseeable future.

All dependants including the children in the foster care of the applicants must be keyed as dependants.