Metro Bank 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, Metro Bank will take a view and consider your application.
Metro Bank will lend up to a multiple of 5.5 times for professionals, and with this great challenger bank, you can take your Mortgage up to the age of 80.
Mortgages for contractors need not be as hard as you think as we have negotiated directly with the lender to consider applications from self employed contractors, and we will take the pain away from the stressful application process.
Metro Bank’s contractor policy towards day rate contractors is as follows:
- Metro Bank has no minimum contract value.
- Metro Bank has no specific profession.
- Metro Bank do not like gaps in employment history, they want you to be working continuously in the preceding 12 months, obviously, having 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.
- Metro Bank will want minimum 6-month contracts, so short 3-month contracts are not acceptable.
- Will only lend up to 85% loan to value, you need a 15% deposit.
Metro Bank will calculate your gross contract value in the following way:
- Metro Bank tend to take your day rate then multiply by 5 days then multiply this by 46 weeks to reach the gross contract value.
- They will not utilise the average of the previous year to reach an average day rate.
- For example, if on a day rate or hourly rate
- £150 per day x 5 days x 46 weeks = £34,500 gross contract value
- £25 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £43,125 gross contract value
In order to package your application, we will require:
- Proof of ID such as Passport or DVLA Licence
- Proof 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 month contract history.
- Latest Mortgage statement or evidence of rent payments to show good conduct.
- Metro Bank Signed Declaration, “Getting to know you” form.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months personal and business bank statements
- 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.
Having everything up front makes our job easier and ensures that we can present your application to the Metro Bank contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
If you have any questions to put to one of our friendly team about the mortgage journey, we are prepared to answer all your questions for free, we will not charge you just to talk.