Barclays has improved its self-employed mortgage criteria to benefit limited company contractor borrowers.
Brokers can now calculate affordability using the day rate up to 90% loan to value (LTV). Previously, this was capped at 85% LTV.
The bank now allows multiple shareholders of the limited company as long as they are all named on the mortgage application. Before the criteria change, only one shareholder was permitted, which resulted in couples who jointly ran a business to be declined.
Contractors are now allowed to have more than one contract, but Barclays caps the hours of work at 48 per week. Borrowers were previously restricted to just one contract.
Last month, Barclays mortgage borrowers were offered discounted energy-efficiency checks through the bank’s partnership with British Gas.
