Bank of Ireland updates mortgage policy for contractors working under Limited Company or Umbrella Company
Bank of Ireland has updated its acceptance criteria to help self-employed contractors operating on a Limited Company or Umbrella Company basis.
To qualify, contractors will need a minimum of 12 months contracting history in the same sector, and their minimum gross contract value must be at least £50,000 per annum.
Aaron Strutt, product director at Trinity Financial, says: “We regularly help clients working as contractors and more of the lenders are making it easier to qualify for their mortgages. They know that many of these borrowers are well paid, and they are looking for larger mortgage loans.”
To work out the amount the client can borrow, Bank of Ireland will use a calculation of 52 weeks income and take 80% of the contract value for affordability purposes. It will also lower the maximum loan size if the client has credit card debt or loans.
Bank of Ireland does not expect clients to have a minimum time to run on their current contract and they will need a 10% deposit to qualify. For interest-only, clients will require a 40% deposit.
To secure a contractor mortgage, call Trinity Financial on 020 7016 0790.