Pepper 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.”