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Pepper to use one year’s income for self-employed

Young-man-working-on-laptop-technology.jpgPepper Money has revealed that it will now base its affordability calculations for self-employed borrowers on their latest year’s net income instead of taking an average of the past two years’ earnings.

The lender says change will benefit business owners, entrepreneurs and sole traders who have seen their income increase in the last year.

Pepper Money sales director Rob Barnard says: “The growth of self-employment shows no sign of slowing with more than 4.8million people self-employed at the end of 2017.

“For the owners of growing businesses, the ability to use latest year’s net income, rather than an average of previous years can make a significant difference to how much they can borrow.

“With this latest enhancement to our criteria and the improvements we made earlier in the year, Pepper has become a much more interesting choice for your self-employed clients.”


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Secure Trust Bank relaxes lending criteria for self-employed

Secure Trust Bank has altered its lending criteria for self-employed borrowers. The specialist lender will now consider net profits as part of its affordability assessment. Net profits can be used for sole traders and for applicants who work in a partnership. In the latter case Secure Trust says it will use the partner’s salary, plus […]


Call for ‘holistic’ approach over self-employed income

Artificially reduced salaries for tax purposes have led to refinancing problems Brokers have called on accountants to take a more holistic approach to ask the self-employed on structured income payments about future borrowing requirements. Mortgage advisers say they now regularly encounter clients who struggle to refinance or extend their mortgage because their income has been […]

What triggers the MPAA?

Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]


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