New proposition considers cash flow and monthly salary to lend high growth entrepreneurs up to five times their total income
Barclays Wealth & Investments has announced the launch of a new mortgage proposition designed specifically to help UK founders of high growth businesses get a foot on the housing ladder.
With traditional lending capped at five times salary, the mortgage will help entrepreneurs who’s salary earnings do not reflect their ability to repay a mortgage by taking cash flow and monthly income into account.
While some banks require three years of trading accounts, Barclays will also consider applications from entrepreneurs with just two. If a customer then meets appropriate risk criteria, the bank will be able to lend them up to five times their total combined income.
Dena Brumpton, chief executive of Barclays Wealth & Investments, commented:
“Many entrepreneurs are focused on the immediate growth of their business, choosing not to take a large salary during the early stages. However, they may also have other forms of income or cash flow that mean they are able to repay a mortgage for the home they really want.
James Layfield, founder of Central Working, added: “I worked closely with the High-Growth team at Barclays to help secure a mortgage. After taking into account my business forecasts and income position, they were willing to be open-minded and work with me to secure the mortgage I needed.”
