Precise Mortgages has launched new lending criteria for self-employed people, affecting all residential mortgage products for both first and second charge mortgages.
The lender’s new self-employed criteria are as follows: one year’s certified accounts or SA302; no minimum trading period; loan-to-values up to 85 per cent; first charge residential rates start from 2.97 per cent; second charge residential rates start from 4.95 per cent; plus purchase and remortgage products are available for first charge.
The firm said that 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 contract.
Alan Cleary, managing director of Precise Mortgages, said: “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.”
