Bank of Ireland is a contractor friendly lender who will accept and consider applications from day rate contractors and hourly rate contractors.
Whether you are a contractor operating through your limited company or through a payroll umbrella, Bank of Ireland will take a view and consider your application.
Bank of Ireland’s policy towards day rate contractors is as follows:
- Bank of Ireland will consider and accept the application from contractors with a minimum gross contract value of £50,000, this equates to either £193 per day or £25.65 per hour assuming a 37.5 week.
- Bank of Ireland will want to see evidence of 12 months contracting history, they will want you to be contracting for 12 months as a minimum and will require you to evidence the 12 months.
- Bank of Ireland will want to see some time remaining on your contract, like 4 weeks, you do not need a long time remaining, they understand that contracts are short term and do not insist on more than four weeks, if you have less than this, they will more than likely ask for an extension or new contract that you will be moving onto.
- Bank of Ireland does not like gaps in employment history, they want you to be working continuously in the preceding 12 months, obviously, having a holiday or taking a few weeks out is not an issue, but if you have several months off in the 12 months, then it may be better to look at one of our other contractor-friendly lenders.
- Bank of Ireland will only consider your relevant shareholding to calculate your gross contract value, this applies to the applicant’s joint shareholding in the limited company.
Bank of Ireland will calculate your gross contract value in the following way:
- Bank of Ireland tends to take your day rate then multiply by 5 days then multiply this by 52 weeks then utilise 80% of this value to reach the value for affordability.
- They will not utilise the average of the previous year to reach an average daily rate.
For example, if on a day rate £193 per day x 5 days x 52 weeks = £50,180 gross contract value and will use 80% of this for affordability purposes.
Or if on an hourly rate £25.65 per hour x (number of hours stipulated or 37.5 hours default) x 52 weeks = £50,017.50 gross contract value
In order to package your application, we will require the following:
- Proof of ID such as Passport or DVLA Licence
- 2 Proofs of Address such as Utility Bill and Council Tax Bill
- Current Contract with the Terms and Conditions needs to be signed and dated
- Previous contract to evidence 12 months contract history
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months personal and business bank statements
Having everything upfront makes our job easier and ensures that we can present your application to the Bank of Ireland contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
If purchasing, then we will require proof of deposit or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required.