Self-Employed solutions expanded

Posted on November 15, 2018

Loughborough Building Society expands range of solutions for Self-Employed and Contractors

Loughborough Building Society has expanded their range of solutions for the self-employed and contractors to include borrowers who only have one year of accounts.

Self-employed borrowers often struggle to secure mortgage finance as many lenders require three years of accounts.  In many circumstances the newly self-employed have been employed in a similar role for a significant number of years before branching out on their own. There are also a number of professionals who buy into an already established business e.g. dentists, solicitors. 

In these situations, where history can be proven, Loughborough Building Society will consider mortgage applications with only one full year of accounts/SA302s and will use their ability to individually underwrite to make a common sense lending decision to help even more borrowers.

This further improves their appeal to self-employed borrowers because Loughborough Building Society already consider retained profits as well as dividends and salary, and will take the last years share of net profit providing there is no reduction from the previous year. Where a reduction is showing an average of the last two years accounts will be used in calculating affordability.

They also consider agency workers providing there is a 12 month history, professionals on fixed term contracts with a minimum of six months remaining on the contract and in certain circumstances workers on zero hours contracts.

Ashley Pearson BDM said “I have a lot of admiration for self-employed people and ultimately they account for just over 15%* of the UK Workforce. It’s important that lenders recognise the vital part they play in the UK Economy and do all they can to help them achieve the home they’ve worked for.”