Changes to our Fixed Term Contract income criteria

We’re pleased to announce that from Tuesday 4 August we’ll be accepting self-employed Fixed Term Contractors (FTC) who’ve been trading for less than 2 years.

We can use this income subject to the following:

  • A minimum of 12 months history of working on a FTC is required
  • We’ll accept applicants with less than a 12 month FTC history, subject to having 2 years minimum remaining on their current contract
  • All applicants with less than a 2 year FTC history must be keyed as employed
  • Proof of income will be confirmed from their current contract

Self-employed applicants with a minimum of 2 years FTC history can either:

Have their income assessed as self-employed, where 100% of the income is considered as per current policy:

  • Applicants being keyed as self-employed
  • Income being confirmed with an accountant’s certificate or HMRC documents

OR

Have their income assessed as employed on a Fixed Term Contract, where 80% of the income is considered, this allows for periods where income may not be earned e.g. holidays:

  • Applicants being keyed as employed on a Fixed Term Contract
  • The income will be confirmed from their current contract

Pipeline Cases

  • For applications with a Decision In Principle (DIP) before 4 August, the current policy will apply, even if a reprocess takes place on or after 4 August
  • Applications with a DIP on or after 4 August will be processed in line with the new criteria

Visit our income criteria page for full details of the change

Help and support

If you have any questions about these changes, please contact your local BDM or your regional Dedicated Broker Support team.