Coventry for intermediaries has updated its lending policy in a move designed to reflect the increase in demand from self-employed borrowers, specifically daily rate contractors.
Its new criteria specifically for daily rate contractors, includes the following:
- A minimum earning requirement of £50k – brokers should calculate their client’s gross earnings by using the calculation ‘day rate x 5 days x 41 weeks’.
- Requirement to show evidence of a minimum of 12 months’ experience in the same line of work (reduced from 24 months from the main self-employed policy), and to have a minimum of six months left on their current contract.
- Evidence of 24 months’ continuous employment in the same line of work if there is less than six months left on their contract.
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.”