"Coventry has always been a friend of the self-employed borrower, so today’s entry into the daily rate contractor market is a welcome addition to their offering."
Coventry for intermediaries has updated its lending policy for self-employed borrowers, specifically daily rate contractors.
The lender requires minimum earnings of £50,000 and is advising brokers to calculate their client’s gross earnings by using the calculation ‘day rate x 5 days x 41 weeks’.
Coventry has also reduced the required experience in the same line of work from 24 months to 12 months.
Borrowers must have a minimum of six months left on their current contract or have evidence of 24 months’ continuous employment in the same line of work.
If a daily rate contractor doesn’t meet these requirements, Coventry for intermediaries could still lend to them on a self-employed basis, but using its policy for sole traders or directors with 20% or more shares.
Kevin Purvey, director of intermediaries, said: “We continue to be a great choice for self-employed borrowers and this policy change will enable us to lend to even more borrowers.
"By taking a common sense approach to self-employed lending and income, and introducing a proposition specifically tailored for daily rate contractors, we’re recognising that the self-employed work in different ways.”
Andrew Montlake, brand director of Coreco, added: “Coventry has always been a friend of the self-employed borrower, so today’s entry into the daily rate contractor market is a welcome addition to their offering. As the way people work continues to change this has been a growing sector for some time now and it is fantastic that the choice available to borrowers in this area also continues to grow.”