Loughborough BS expands lending criteria for self-employed

House-Market-Mortgage-Property-700.png

Loughborough Building Society has expanded its range of mortgage options for contractors and the self-employed.

This range now includes finance options for those who only have one-year’s full accounts.

Loughborough says it will make “common sense decisions” in cases were those who are newly self-employed have worked in a similar role for a number of years.

It points out that there are also a number of professionals – such as dentists and solicitors – who buy into an already established business.

Loughborough already takes into account retained profits as well as dividends and salary when calculating affordability for the self-employed. It will also take the last year’s share of net profit, providing there is no reduction from the previous year.

The building society will also consider agency workers providing there is a 12-month history, professionals on a fixed-term contract (where a minimum of six months remains) and, in certain circumstances, workers on zero hours contracts.

Loughborough’s business development manager Ashley Pearson says: “Self-employed people account for just over 15 per cent of the UK workforce. It’s important that lenders recognise the vital part they play in the economy.”

Recommended

buy-to-let

Self-employed mortgages top broker searches

Mortgages for self-employed borrowers with only a year’s accounts were the most searched-for product on Knowledge Bank according to its criteria activity tracker for July. The search facility found that the second most searched-for criteria was “maximum age at end of term”, as brokers sought out remortgage options for older borrowers. After this, the most […]

Business-People-Walking-Motion-Leaving-Beige-700x450.jpg

Skipton improves income policy for self-employed contractors

Skipton Building Society has altered the way it assesses income for self-employed contractors, following feedback from brokers. Brokers will now be able to multiply the client’s day-rate by five then by 48, to determine their annual income. This will now be assessed as employed income, rather than the self-employed income, as was the case before. […]

Beach-Holiday-Deck-Chair-Vacation-Sun-700x450.jpg

Tipton offers new Airbnb mortgage

Tipton & Coseley Building Society has launched a new mortgage for Airbnb hosts. The building society will now accept mortgage applications for second homes and holiday lets where the borrowers wish to let the property out via the Airbnb website. A recent investigation by Mortgage Strategy found that few lenders are willing to provide mortgages […]

Newsletter

News and expert analysis straight to your inbox

Sign up