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Bank of Ireland Contractor Mortgages

Contractor mortgages cater to those with variable incomes from day rate or hourly work, providing the flexibility that standard home loans lack.

Bank of Ireland is noted for its contractor-friendly mortgages, carefully considering applications from individuals, whether they operate under limited companies or payroll umbrellas. This considerate assessment simplifies the process of securing financing that matches the contractor’s professional situation.

Bank of Ireland Contractor Mortgages

Understanding the Bank’s Approach

Bank of Ireland’s approach to contractor mortgages is designed to accommodate the unique financial profiles of contractors. By setting clear guidelines, the bank ensures that the mortgage process is as straightforward and accessible as possible for contractors.

What Sets Bank of Ireland's Contractor Criteria

Bank of Ireland has established specific criteria for day rate and hourly rate contractors seeking mortgages, ensuring clarity and consistency in how applications are assessed.

Key Eligibility and Assessment Criteria

Minimum Gross Contract Value

Applicants must have a contract with a minimum value of £50,000, equating to a daily rate of £193 or an hourly rate of £25.65 over a standard 37.5-hour week.

Contracting History

A minimum of 12 months contracting experience is required, with necessary documentation to prove this duration.

Remaining Contract Duration

At least four weeks of remaining contract duration is expected, with flexibility shown towards the contract's short-term nature

Continuous Employment

A consistent work history over the last 12 months is preferred, though short breaks like holidays are permitted

Shareholding Consideration

The applicant’s shareholding in any limited company is considered when calculating the gross contract value.

How Does Bank of Ireland Calculate Contractor Mortgage Affordability?

Bank of Ireland utilises a specific formula to assess mortgage eligibility for contractors, considering either day rates or hourly wages, which reflects the flexible earnings typically associated with contract employment.

Calculating Gross Contract Value
  • Day Rate Calculation: Your daily rate is multiplied by five and then by 52 weeks, with 80% of this total used to evaluate your mortgage affordability. For instance, a daily rate of £193 leads to a gross contract value of £50,180, of which 80% is considered.
  • Hourly Rate Calculation: Hourly wages are calculated by multiplying £25.65 by your weekly hours (either the standard 37.5 or as stipulated), and then by 52 weeks to determine your affordability.

Required Documentation for a Streamlined Application Process

Required Documentation for a Streamlined Applicaion Process

Required Documents
  • Valid ID (e.g., Passport, DVLA Licence)
  • Two proofs of address (Utility Bill, Council Tax Bill)
  • Signed and dated current contract
  • Previous contract for 12-month history
  • Up-to-date CV demonstrating work record
  • Three months’ personal and business bank statements

This clear and concise approach allows the Bank of Ireland to efficiently process contractor mortgage applications, accommodating the unique financial profiles of contractors.

How Mortgage Knight Facilitates Bank of Ireland Contractor Mortgages

Mortgage Knight simplifies the application process for Bank of Ireland contractor mortgages, making it easier for contractors to proceed. They understand the unique aspects of contractor income, effectively managing applications to meet Bank of Ireland’s requirements. Their support includes personalized guidance and committed assistance, helping contractors access competitive mortgage rates. Through collaboration with Bank of Ireland, Mortgage Knight effectively connects contractors’ specialized needs with conventional mortgage solutions.