Barclays has made a series of criteria changes that relax its allowable income rules for limited company contractor borrowers.  

Its policy now says:  

• Affordability can be calculated using the day rate for up to 90% LTV   
• More than one shareholder can be accepted where all applicants collectively own 100% shares   
• Each applicant is allowed more than one contract  

The bank’s changes come as lenders look for ways to attract borrowers through various lending policy changes.  

This is a reaction to the Bank of England keeping the base rate at a 16-high year of 5.25% since last August, as the central bank battles to bring down inflation at 3.2%.    

Money markets are betting that the first BoE base rate cut may be pushed back into the second half of the year from the summer, following concerns about “persistent inflation” from several Monetary Policy Committee members.    

Last week, Aldermore introduced “a broader range of mortgages for owner-occupiers” that it said would target the self-employed, among other groups.  

In March, Virgin Money loosened a range of income and documentary restrictions around borrowing among contractors.