Barclays Mortgage Policy Changes You Need To Know

by | Thursday 15th Jun 2023 | Mortgage News

There have been some recent changes to Barclays mortgage policy announced today, that everyone needs to be aware of. Barclays, like many other lenders of late, have been making major changes to their mortgage affordability and their interest rates. Unfortunately for many, mortgage interest rates have gone up significantly in recent months meaning that monthly mortgage payments have increased. Lenders have also been tightening their mortgage affordability criteria, making it more difficult for people to borrow larger loans. However, as a nice breath of fresh air, Barclays have announced some changes to their mortgage lending policy that should hypothetically help people to borrow more and make the mortgage application process a lot smoother.

Contractor Holiday Pay and Barclays Mortgage Policy

A contract worker or contractor is someone who is not traditionally employed on a full time permanent contract. Contractors are often skilled workers who take up temporary contracts and it is not uncommon for them to move from contract to contract or take on several contracts. Because of the way they are employed, getting a contractor mortgage can be more difficult than a mortgage for an employed person. In Barclay’s new policy update, they have announced that they will now accept holiday pay for contract workers under an umbrella agency as income towards affordability. Meaning that more income can be included in mortgage affordability for contract workers. For more information on this, give our team of mortgage brokers a call today.

Pension Letter For Mortgage Application

Barclays have announced that they will now accept the latest full month’s bank statements showing pension income rather than a DWP pension letter as proof of income for mortgage applications. This new change means that people who are applying for a mortgage with part of their income coming from a pension will now only need to provide a month’s bank statement rather than the full pension letter. Hopefully saving time and stress at application stage.

Buy To Let Proof Of Rental Income

Barclays have also announced the following change to their proof of rental income criteria. Documentary evidence for proof of rental income for all existing buy to let properties’ will only be requested by Barclays’ application system where the rental income is required to meet affordability. This is a positive change as previously, if a buy-to-let landlord was applying for a mortgage, Barclays would have requested proof of the rental income received for all owned properties. If this rental income is not needed or going to be used for mortgage affordability purposes, Barclays will no longer need to see proof of it. If you are using rental income for affordability, your mortgage advisor will be able to advise you on what documentary evidence you will need to provide.

Speak To a Mortgage Advisor

These new changes from Barclays mortgage policy are really positive and can benefit a lot of people potentially looking at getting a mortgage through them. If you or anyone you know is interested in getting a new mortgage, you can give our team of mortgage brokers a call today to see how we can help you to get the best deal possible.

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