Barclays Contractor Mortgages
Welcome to our comprehensive guide on securing contractor mortgages with Barclays. In today’s digital age, the relationship between customers and bank managers, characterized by a personal touch and the manager’s authority to make decisions based on merit, has become somewhat obsolete. Nowadays, automated systems predominantly drive decision-making at Barclays and throughout numerous lending institutions.
Requirements for Contract Workers
Barclays offers mortgage solutions for a range of contract workers, including those under umbrella companies, agency workers, and fixed-term contractors. Here are the specific requirements:
Umbrella, Agency, or Fixed-Term Contractors:
To qualify, individuals must have a minimum of three months of employment on a PAYE basis. This should be supported by providing pay slips or other equivalent income evidence.
Self-Employed Contractors:
For self-employed contractors to qualify for the daily rate calculation, they must operate as a limited company with just one contract and no additional staff members. They should also hold the sole shareholder status. The contractual agreement must be worth at least £218 per day or £50,000 per year before tax.
Barclays calculates contractor income using the lower of three possible values, including the average daily rate from the two most recent contracts, the most recent daily rate, and the actual income shown on bank statements. This figure is then multiplied by 5 and 46 to obtain the annual income.
If someone expresses their income as an hourly rate, the calculation assumes a maximum of 40 hours per week by default unless stated otherwise.
It’s important to note that maintaining a continuous stream of contracts requires avoiding any gap exceeding six weeks between them. Additionally, for the current contract to be considered, it should have at least three months remaining. Alternatively, providing evidence of the next contract would also suffice.
When using the daily rate calculation, it is essential to record and consider any credit commitments that the limited company is responsible for in the affordability assessment.
Barclays requires the most recent bank statements for both personal and business accounts, covering a period of three complete months.
Securing an Appointment with a Barclays Mortgage Advisor
Securing an appointment with a Barclays Mortgage Advisor might take some time due to the high demand they are experiencing. However, we can help expedite this process for you. Contact us today, and our team at Contractor Mortgage Solutions will guide you through the steps to secure your appointment promptly.
Contact Us
Please feel welcome to reach out to us either by phone or by submitting an online inquiry. Rest assured; we will respond promptly, initiating a relaxed and informal conversation that involves no obligations on your part.
- Phone: 020 3827 8558
- Address: 31, Metro Centre, Dwight Rd, Northwood, Watford WD18 9SB
- Email: info@contractormortgagesolutions.com
- Website: www.contractormortgagesolutions.com
We are here to assist you in achieving your homeownership goals, whether you are a contract worker or self-employed. Contact us today, and let’s start the journey towards your dream home!
