Employment criteria

This is where a job is only for a set period, although the contract may be renewed or extended. You should 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.

We'll consider where applicants state that their current contract is unlikely to be renewed.

• Length of time with current employer
• The contract has been renewed before
• Remaining term of the current contract
• The prospects of obtaining alternative employment in the same type of work at a similar salary
• The contract is connected to a specific project.

If your client is employed on a fixed term contract but invoices the employer via a limited company that they're not the sole director/shareholder of, they would be treated as self-employed.

You should treat Trainee/Junior NHS staff as permanent employees. This includes, but isn't limited to, specialty registrars, trainee nurses, and foundation/training doctors. Visit our proofs page to learn which proofs we require for employed individuals.

• Latest payslip. You can only use basic income
• 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. Complete our notification for new business form. Then Scan and Attach it to clear the requirement.

If they haven't received their first payslip yet, you can use their open-ended employment contract or letter of appointment from the employer. The letter must be addressed to the applicant.

• The latest payslip from their new job. You can only use basic income
• If a payslip is not available, you must provide either:
• the signed open-ended employment contract, or
• a letter of appointment from the employer

We'll consider clients who are starting a new job with a different employer within three months of applying for a mortgage. For example, an applicant applies for a mortgage in July and is starting their first job in September.

If they haven't received their first payslip yet, they can use their open-ended employment contract or letter of appointment from the employer.

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

• Received a pay rise in their current role, but it's not reflected in their latest payslip. For example, evidence uploaded in June and their pay rise will take effect in August of the same year.
• 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 received from their employer confirming their basic income. This letter must be addressed to the applicant.

Employed - Where the latest payslip shows no UK tax and or NI deduction we'll require:

• The latest UK tax calculation and corresponding tax year overview which shows:
• no UK tax has been charged or paid.
• OR an employer letter on headed paper confirming that
• the applicant has permanent employment
• their core contractual income currency is sterling and
• the applicant is exempt from UK tax.

Fixed Term Contractor - The latest contract will confirm the core contractual income, which must be in sterling. We'll require;

• The latest UK tax calculation and corresponding tax year overview which shows:
• no UK tax has been charged or paid.
• OR an employer letter on headed paper confirming that
• their core contractual income currency is sterling and
• the applicant is exempt from UK tax.

Please contact us if your client is an existing Nationwide borrower and can’t meet the required criteria as some applications can be referred to our senior underwriters.

• We'll need to see the last 2 years' income, where we'll either use the lower of the most recent year's salary and dividends or the average of the last 2 years' salary and dividends. This can be confirmed via our HMRC tax assessment or an accountant's certificate.
• The latest years end can't be more than 18 months ago. Drafts and projections aren't acceptable. If the last accounting period is greater than 12 months, the income figures will be annualised.  

Directors who have been self-employed for less than two years

Please contact us if your client is an existing Nationwide borrower and has been self-employed for less than two years but is working as part of a business that has been established for longer, as some applications 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 and now owns a share of the business or has become a partner in the firm. A letter from the Senior Partner, Accountant or Practice Manager is required that:

• confirms the partnership is well established
• the date the applicant became a partner and their expected income in the next 12 months.

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.

• A minimum trading period of 2 years is required.

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

• 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.

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.

You must key the 'day rate' x 'no of days' x '52 weeks' and the calculator will work out the maximum borrowing amount.

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, subject to the applicant being keyed as 'employed' on a fixed term contract and the full amount of income on the 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 and the full amount of income on the contract. 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 HMRC documents or an accountants certificate. 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 HMRC documents or an accountants certificate. 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.

There is no requirement to provide details of the fixed term contractor’s limited company unless requested by Nationwide.

If the applicant has 12 months working via an umbrella company we will treat them as a fixed term contractor (FTC).

With effect from 30 June 2021, where applicants have been employed less than 12 months via a UK based Umbrella Company they must be able to prove a minimum 12 months continuous consecutive Fixed Term Contract history to meet our FTC criteria.

Applicants should be keyed as a Fixed Term Contractor (FTC) with the umbrella company keyed as the employer.

You must key the 'day rate' x 'no of days' x '52 weeks' and the calculator will work out the maximum borrowing amount.

If the umbrella company has listed expenses separately to the earned income, then only the earned income should be used.

The proof requirement for FTC’s employed via an Umbrella Company is the employment contract between the applicant and the Umbrella Company. We require a letter from the Umbrella Company confirming the last 12 months earnings paid to the applicant. This is where the contract does not show the FTC income.

Where 12 months proof of earnings is not available, we'll accept a letter from the Umbrella Company confirming the start date, daily/hourly rate and number of days/hours worked.

Sub-Contractors who work via their own Limited Company, Partnership or as a sole trader are treated as self-employed.

Where a Sub-Contractor is working as an individual, only basic rate tax (currently 20% for registered, or 30% for unregistered subcontractors) is deducted by the employer; this is commonly seen as a CIS deduction on the payslip. In these cases the applicant should be treated as self-employed and cannot be treated as a Fixed Term Contractor.

If a Sub Contractor’s employer deducts full PAYE tax and National Insurance, please refer to employed fixed term contracts.

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

Self employed income guidance applies. We'll also require the latest 2 years UK tax calculations and corresponding tax year overviews. The latest tax year overview must show no UK tax has been charged or paid.