The new criteria affects all residential mortgage products both first and second charge.
Most lenders require at least two years, and in some cases three years, of accounting information from self-employed people compared to just one year of employment history for those on PAYE contracts.
Precise Mortgages’ new self-employed lending criteria is as follows:
- One year’s certified accounts or SA302
- No minimum trading period
- LTVs up to 85%
- First charge residential rates start from 2.97%
- Second charge residential rates start from 4.95%
- Purchase and remortgage products available for first charge
Alan Cleary, Managing Director of Precise Mortgages, commented:
"Performance of our mortgage book coupled with evidence collated by our credit team show that the extra information being demanded from self-employed applicants is not justified. Self-employed Brits are growing in numbers and play a large part in the much improved employment figures the Country is now enjoying.”
