It will consider 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.
It said this would allow contractors to apply with a shorter trading period than is required under the standard self-employed criteria and would also eliminate delays waiting for accounts to be prepared.
The change will apply to contractors who own and run their own company, those who operate through an umbrella company and sole traders.
As part of the new guidelines, the bank will now consider:
- Maximum 90% LTV
- Contracts expressed in daily or hourly rates
- Minimum gross contracting income of £50,000
- Affordability based on 80% of the applicant’s gross contract income.
Bank of Ireland UK director of sales Alison Pallett (pictured) 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.”
Secure Trust Bank launched into the UK mortgage market today with a range of products designed to help self-employed borrowers and those with complex income. Read Mortgage Solutions exclusive interview with managing director of mortgages Esther Morley to find out more about the bank’s proposition.