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:
- Contract Value and Profession: Metro Bank does not set a minimum contract value and is open to applications from contractors in any profession.
- 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.
- Contract Length: Metro Bank requires a minimum of a six-month contract, so shorter three-month contracts are not considered.
- 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.
Metro Bank Contractor Mortgage
Securing a mortgage as a contractor might be tough, but Metro Bank makes the process easier by offering a personalised approach to contractors. Whether you’re working on a day rate or an hourly rate basis, through a limited company or a payroll umbrella, Metro Bank is open to considering your mortgage application.
Here’s everything you need to know about getting a contractor mortgage with Metro Bank, including their unique policies, requirements, and how you can maximise your chances of approval.
Metro Bank Contractor Mortgage
Securing a mortgage as a contractor might be tough, but Metro Bank makes the process easier by offering a personalised approach to contractors. Whether you’re working on a day rate or an hourly rate basis, through a limited company or a payroll umbrella, Metro Bank is open to considering your mortgage application.
Here’s everything you need to know about getting a contractor mortgage with Metro Bank, including their unique policies, requirements, and how you can maximise your chances of approval.
Metro Bank’s Contractor Mortgage Policy
Metro Bank has a specific mortgage policy for contractors, making them one of the more flexible options for independent workers. Below are the key aspects of their policy:
Contract Value and Profession
Metro Bank does not impose a minimum contract value. This makes them accessible to a wide range of contractors, whether you’re working in IT, engineering, creative industries, or other sectors. Regardless of your profession, Metro Bank will consider your application on its individual merits.
Employment History
To qualify, Metro Bank prefers contractors to have at least 12 months of continuous work history. While brief breaks or holidays are acceptable, extended gaps between contracts might lead to a need to explore other contractor-friendly lenders. This employment history helps demonstrate financial stability, which is a key factor in any mortgage approval.
Contract Length
Metro Bank requires contractors to have a minimum contract length of six months. Shorter three-month contracts are not eligible, but this policy ensures a more stable financial footing from the lender’s perspective.
Loan-to-Value (LTV)
Metro Bank offers lending up to 85% LTV, meaning you would need a minimum deposit of 15% of the property’s value. This LTV ratio is competitive, allowing contractors to access high-quality mortgage products without having to provide an excessively large deposit.
How Metro Bank Calculates Contractor Income
A crucial part of the mortgage approval process is calculating your gross contract value. Metro Bank uses a straightforward calculation that considers your day or hourly rate and applies a set formula to determine your annual earnings for mortgage purposes.
Daily Rate Calculation
Daily Rate x 5 (working days) x 46 (weeks) = Gross Contract Value
Example:
£150 daily rate x 5 days x 46 weeks = £34,500 gross contract value.
Hourly Rate Calculation
Hourly Rate x (stipulated or default of 37.5 hours) x 46 weeks = Gross Contract Value
Example:
£25 hourly rate x 37.5 hours x 46 weeks = £43,125 gross contract value.
Importantly, Metro Bank does not use your previous year’s average daily rate for calculations, making the process simpler and more predictable.
Application Requirements for Metro Bank Contractor Mortgages
Ensuring you have the correct documentation ready is vital to a smooth mortgage process. Metro Bank requires several key documents, which we can assist you in gathering:
Documents Required:
Proof of ID
(e.g., Passport, DVLA Licence)
Proof of Address
(e.g., Utility Bill, Council Tax Bill)
Current Contract
(with Terms and Conditions, signed and dated)
Previous Contract
(to demonstrate 12 months of contracting history)
Latest Mortgage Statement
or evidence of rent payments (for remortgaging or demonstrating good financial conduct)
Metro Bank Signed Declaration
and “Getting to Know You” form
Up-to-date CV
(to show a solid work history)
Personal and Business Bank Statements
(from the last three months)
Metro Bank Signed Declaration
and “Getting to Know You” form
Having all these documents in place will enable us to efficiently submit your application to Metro Bank’s underwriters, increasing the likelihood of a swift and positive decision.
How We Can Help You
Our team at Mortgage Knight is here to guide you every step of the way through your contractor mortgage journey. We specialise in contractor mortgages and have a wealth of experience in dealing with lenders like Metro Bank. Whether you need help compiling your documents, understanding your mortgage options, or simply seeking advice, we’re here to assist – free of charge.
We believe in providing friendly, helpful advice to ensure that your mortgage process is as smooth and stress-free as possible.
Get Started Today
If you’re a contractor looking to secure a mortgage, Metro Bank could be the ideal lender for you. With flexible income calculations, high loan-to-value options, and a simplified application process, they are well-suited to meet the needs of contractors across various industries.
For more information or to start your application, contact us today for a no-obligation consultation.
Let us help you secure the mortgage you deserve, without the hassle.
