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.”