Loughborough Building Society is introducing some changes to its criteria for people who are self-employed, which are set to be applicable across most of the residential loans it offers.
From now on, people who are classified as limited company directors, members of partnerships or sole traders will be able to apply for a mortgage from Loughborough BS with just a single year’s financial accounts. In the past, the lender required people in that position to provide accounts over a minimum of two years if they wanted to be eligible for a residential mortgage.
These new criteria will apply to all remortgage or purchase residential loans across the Loughborough BS slate that have loan-to-value (LTV) of up to 80%. Self-employed people who had an employed position in the same field before can take advantage of it, as well as those who have just qualified, as long as they can supply accounts for one year.
Loughborough BS intermediaries chief Ashley Pearson stated to Financial Reporter that the company was aware of the difficulties that the self-employed often experience when trying to get a mortgage. She then added:
“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.”
Every mortgage advisor who has completed a CeMAP course will be aware of how those who are self-employed can struggle with mainstream lender criteria, so hopefully this will lead to similar moves from other big lenders in the UK.
