metro bank contractor mortgage

Metro Bank is open to receiving and considering mortgage applications from both day rate and hourly rate contractors. This includes contractors working through a limited company or a payroll umbrella. Metro Bank evaluates each application on its own merits.

One of the standout features of Metro Bank is their willingness to lend up to a multiple of 5.5 times income for professionals, making them an excellent choice for contractors. Additionally, with Metro Bank, it’s possible to obtain a mortgage up to the age of 80.

Navigating mortgages for contractors can be simpler than expected, as we have established direct negotiations with the lender to facilitate applications from self-employed contractors. Our aim is to alleviate the stress typically associated with the mortgage application process.

Metro Bank’s Contractor Mortgage Policy:

  1. Contract Value and Profession: Metro Bank does not set a minimum contract value and is open to applications from contractors in any profession.
  2. Employment History: Continuous work over the preceding 12 months is preferred, with allowances for holidays or brief breaks. However, extended gaps might lead to exploring other contractor-friendly lenders.
  3. Contract Length: Metro Bank requires a minimum of a six-month contract, so shorter three-month contracts are not considered.
  4. Loan to Value: Metro Bank offers lending up to 85% loan to value, which means you need a 15% deposit.

Calculation of Gross Contract Value:

  • Metro Bank calculates the gross contract value by multiplying the daily rate by five (for a working week), then by 46 weeks.
  • The average daily rate from the previous year is not used in these calculations.

Example Calculations:

  • Day Rate: £150 x 5 days x 46 weeks = £34,500 gross contract value.
  • Hourly Rate: £25 x (stipulated or 37.5 hours default) x 46 weeks = £43,125 gross contract value.

Application Requirements:

  • Proof of ID (such as a Passport or DVLA Licence).
  • Proof of Address (such as a Utility Bill and Council Tax Bill).
  • Current Contract with Terms and Conditions, signed and dated.
  • Previous contract to evidence a 12-month contracting history.
  • Latest Mortgage statement or evidence of rent payments to demonstrate good financial conduct.
  • Metro Bank Signed Declaration and “Getting to know you” form.
  • An up-to-date CV to demonstrate a strong work record.
  • Three months of personal and business bank statements.
  • Proof of deposit or a gifted deposit letter for property purchases, with a template provided by us if necessary.

Having all the required documentation ready streamlines the process, enabling us to present your application to Metro Bank’s underwriters effectively, ensuring a swift and positive outcome.

If you have any queries or need guidance on your mortgage journey, our team is ready to assist you at no charge. We believe in offering free, friendly advice to support you through this process.



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