Aldermore is to reduce the minimum accounts a self-employed borrower must provide when applying for a residential mortgage – from two years’ accounts to one – taking into consideration profit retained within the business when assessing affordability.
Applications should be accompanied by, one year of accounts prepared by a suitably qualified accountant; accountants certificate SA302 and accompanying tax overview documents obtained from HMRC.
Aldermore will usually use the latest years’ figures rather than an average of the last two years when making the assessment, if net profit is level or rising.
Charles Haresnape, Aldermore’s group managing director, mortgages, said: “There’s a growing demand for a tailored approach for self-employed applicants and their needs. As they often do not fit the ‘norm’ for many high-street lenders, it can be a real challenge for them to receive the financial support they need to buy a home.
“Self-employment now accounts for 15% of the UK’s employed market, and we are consistently working to make sure the process of applying for a mortgage is as straightforward as possible.
“We have always listened carefully to our brokers and customers to ensure our product range can offer the best possible solution for each applicant’s unique situation. One in four Aldermore mortgages comes from a self-employed person and I feel the change to our mortgage criteria will help make the process much easier for our self-employed customers to apply for a mortgage, whilst providing them with the support they need.”