Bank of Ireland is known for its contractor-friendly approach, readily accepting and considering applications from both day rate and hourly rate contractors.
Whether you’re a contractor operating through your own limited company or via a payroll umbrella, Bank of Ireland will assess and consider your application.
Bank of Ireland’s Guidelines for Day Rate Contractors:
- Minimum Gross Contract Value: Bank of Ireland requires a minimum gross contract value of £50,000 for contractor applications. This is equivalent to a daily rate of £193 or an hourly rate of £25.65, based on a standard 37.5-hour week.
- Contracting History: Applicants need to have at least 12 months of contracting experience. Bank of Ireland requires proof of this one-year minimum contracting period.
- Remaining Contract Duration: The bank expects to see a remaining contract duration of at least four weeks. Understanding the short-term nature of contracts, Bank of Ireland does not insist on a longer duration. However, for contracts with less than four weeks remaining, they may request evidence of an extension or a new contract.
- Continuous Employment: Bank of Ireland prefers a continuous work history over the previous 12 months. Short breaks, like holidays, are acceptable, but extended gaps may necessitate exploring other contractor-friendly lenders.
- Shareholding Consideration: The bank takes into account the applicant’s relevant shareholding in a limited company when calculating gross contract value.
- Gross Contract Value Calculation: To determine gross contract value, Bank of Ireland multiplies the daily rate by five (for a working week) and then by 52 weeks, using 80% of this value for affordability assessments. They do not use the previous year’s average for daily rate calculations.Example Calculations:
- Daily Rate: £193 x 5 days x 52 weeks = £50,180 (80% of this value used for affordability).
- Hourly Rate: £25.65 x (stipulated or 37.5 hours default) x 52 weeks = £50,017.50.
Required Documentation for Application:
- Proof of ID (e.g., Passport or DVLA Licence).
- Two proofs of address (Utility Bill and Council Tax Bill).
- Current contract with terms and conditions (signed and dated).
- Previous contract to evidence a 12-month contracting history.
- An up-to-date CV demonstrating a strong work record.
- Three months of personal and business bank statements.
Providing all necessary documentation upfront facilitates a smooth application process and enables Bank of Ireland’s underwriters to make a prompt and favourable decision.
For property purchases, proof of deposit or a gifted deposit letter is required. We will provide the template for the letter if needed.