Bank of Ireland Contractor Mortgages
Bank of Ireland is an accommodating lender for contractors of both day rate and hourly rate contract work, welcoming applications from day rate as well as hourly rate contractors alike. No matter if you operate through your limited company or payroll umbrella, Bank of Ireland welcomes reviewing any applications received.
Bank of Ireland’s policy regarding day rate contractors
Individual contractors (not household-level workers) must achieve an annual gross contract value of at least £50,000, which corresponds to either £193 per day or £25.65 an hour when considering 37.5-hour work weeks.
Bank of Ireland requires evidence of your 12-month contracting history and duration; you will be asked to present evidence as supporting evidence.
Bank of Ireland understands the temporary nature of contracts and does not insist upon an extended time period; should your current contract have less than four weeks left, they may offer to extend or offer you a transition contract instead.
Bank of Ireland prefers seeing continuous employment history without significant gaps over the previous 12 months, including holidays or days off for any reason. Though taking holidays or taking days off here and there won’t be an issue, if cumulative gaps of one month or more exist over that timeframe it might be prudent to explore contractor-friendly lenders instead.
LTV ratio should not exceed 90% excluding fees.
Bank of Ireland calculates gross contract value as follows:
Your daily rate is multiplied by 5 days and then 52 weeks to calculate affordability calculations, using 80% of this value for their calculations.
Bank of Ireland would use 80% of this amount, which amounts to £104,000. As an example, if your daily rate were £500 and contracted for 5 days a week during its entirety, its gross value is calculated as follows.
Bank of Ireland does not take into account an average of past years to calculate its daily rates.
Required Documents for Application
To complete your application, we require the following documents:
- Proof of ID such as a Passport or DVLA Licence will also be necessary.
- Proofs of address should include utility or council tax bills as evidence of residency.
- Current Contract with Signed Terms and Conditions.
- Show evidence of your 12-month contract history by providing previous contracts.
- Maintain an up-to-date CV to highlight your impressive work experience.
- Bank statements covering three months’ of personal and business accounts.
Gathering all of the necessary information up-front makes our process faster, allowing us to present your application to the Bank of Ireland contractor mortgages underwriter in an organized fashion – and speed up a positive decision.
Property Purchase Requirements
When buying property, we will require proof of deposit or gifted deposit letter if applicable – we provide letter templates as necessary.
Contact Us
Reach out to us via phone or submit an inquiry online – and we will arrange a no-committal meeting or discussion!
