Bank of Ireland UK will now consider mortgage applications from professional self-employed contractors who have been trading for at least 12 months and will use the current contract for the purpose of verifying income.
This allows contractors to apply with a shorter trading period than is required under the standard self-employed criteria and eliminates delays waiting for accounts to be prepared.
The lender says this change will be of benefit to contractors who own and run their own company, those who operate through an umbrella company and sole traders.
Bank of Ireland UK will now consider a maximum loan to value of 90% and contracts expressed in daily or hourly rates.
In addition, it will consider a minimum gross contracting income of £50,000 and affordability based on 80% of the applicant’s gross contract income.
Alison Pallett (pictured), director of sales at Bank of Ireland UK, said: “As the employment landscape evolves, we must recognise that the needs of our customers are also changing. Contractors are a growing segment of the market, and we are delighted to respond to feedback from our intermediary network partners.
“By introducing these changes the Bank will provide further support to the self-employed.”
