Barclays Wealth & Investments has changed its criteria to make it easier for entrepreneurs to secure their desired mortgage.
Barclays will now consider entrepreneurs’ salary, cashflow and business and investment income when determining eligibility, as mortgages were previously capped at five times salary which doesn’t always reflect their ability to repay.
To be a Barclays Wealth & Investments customer you have to hold more than £500,000 of investments with the bank.
Dena Brumpton, chief executive of Barclays Wealth & Investments, said: “We recognise the sacrifices that entrepreneurs make in order to create the wealth, employment and successful businesses of the future.
“But to date far too many have either been declined a mortgage that they can afford to repay, or have had to pay significantly higher rates with secondary lenders.
“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.”
Barclays will consider applications from entrepreneurs with two years’ trading accounts.
Raheel Ahmed, head of Barclays Mortgages, said: “We are here to help and support our clients move forward and believe we’re uniquely placed to help entrepreneurs by offering end to end services from business banking to mortgages to wealth management.
“With the creation of wealth increasingly coming from entrepreneurs, we should be making it easier for them to buy a home and that is why we have worked with our Wealth business to develop an entirely new form of personalised mortgage proposition.”
Barclays Wealth & Investments offers residential and investment mortgages as well as bespoke solutions for larger and more complex purchases.