Barclays are one of the largest banks in the UK. Their mortgage rates have always been reasonably competitive when looking at a Barclays contractor mortgage, and the current product range still offers a wide variety of product options, including offset mortgages, buy to let and large loans in excess of £500,000.
After years of not providing lending for contractors, Barclays decided to work closely with CMME in an initial pilot. This started with very little criteria which grew into Barclays understanding the way in which contractors work. They take feedback on board and want to make sure the policy is always relevant to the way contractors are working. The pilot has now developed into them re writing their policy and now the pilot is available to a few others in the industry.
The relationship we have with Barclays is crucial to the underwriting process, we have worked with them for years to help mould the contractor policy as we are highly experienced in dealing with contractors. Barclays standard criteria also means contractors can buy through help to buy and other schemes.
Currently, Barclays still maintain that a mortgage is assessed under either “employed” or “self-employed” criteria. They have a full guide for this on their website here: https://www.barclays.co.uk/mortgages/first-time-buyers/guides/self-employed-mortgages/
With limited companies, salary and dividend draw will be used to define earnings. Barclays do allow the use of retained profit in certain circumstances, but in reality the underwriters will look to revert to personal taxable earnings. These are all importants factors when looking at a Barclays contractor mortgage.