Barclays Relaxes Limited Company Contractor Lending Criteria

As a contractor, navigating the complex world of mortgage lending can be a daunting task. However, Barclays has recently made some significant changes to its lending criteria, making it easier for limited company contractors to secure a mortgage.

The bank’s new policy allows for affordability to be calculated using the day rate for up to 90% LTV, and accepts multiple shareholders where all applicants collectively own 100% of the shares. Additionally, each applicant can have more than one contract, providing greater flexibility for contractors.

This move is likely a response to the current economic climate, with the Bank of England keeping the base rate at a 16-year high of 5.25% since last August. The central bank is battling to bring down inflation, which currently stands at 3.2%. As a result, lenders are looking for ways to attract borrowers, and Barclays’ changes are a welcome development for contractors.

In recent weeks, other lenders have also made changes to their lending policies. Aldermore, for example, introduced a broader range of mortgages for owner-occupiers, targeting the self-employed and other groups. Virgin Money also loosened its income and documentary restrictions for contractors.

Relaxed lending criteria is a welcome development for contractors

As a contractor, it’s essential to stay informed about the latest developments in the mortgage market. With lenders continually adapting to the changing economic landscape, it’s crucial to work with a knowledgeable broker who can guide you through the process.

The Bank of England’s base rate remains at a 16-year high

In conclusion, Barclays’ relaxation of its lending criteria is a positive step for limited company contractors. As the mortgage market continues to evolve, it’s essential to stay informed and work with a knowledgeable broker to secure the best possible deal.

A knowledgeable broker can help you navigate the complex world of mortgage lending