Enhanced criteria aims to support applicants transitioning from employment to self-employment
Loughborough Building Society has made a self-employed criteria change which will enable the lender to accept one year’s worth of accounts for sole-traders, partnerships, and directors of limited companies.
The criteria change applies to loans at up to 80% loan-to-value (LTV), covering the mutual’s residential product line for both purchasing and remortgaging the main residence.
The lender said the enhanced criteria was designed to support applicants transitioning from employment to self-employment in the same field, as well as newly qualified professionals who have a year’s accounts. Additionally, Loughborough may consider a second-year projection for businesses trading for at least 18 months, provided a qualified accountant prepares the projection.
“Securing a suitable mortgage continues to prove that bit more challenging for many self-employed people across the UK, with this demographic often falling foul of one-size-fits-all mainstream lending criteria,” commented Ashley Pearson (pictured), head of intermediaries at Loughborough Building Society.
“For brokers with self-employed clients, it’s never been more important to understand the breadth of available options and in recognising the flexibility of certain lenders when looking to place this type of business, even for those relatively new business ventures.
“We hope this positive criteria enhancement will help open up more avenues for this vital component within the UK workforce to access the type of mortgage product they need and deserve.”
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