Skipton Building Society is changing policy to make it easier for self-employed contractors when applying for a mortgage.
The building society last month announced it was returning to pre-pandemic criteria by increasing maximum loan to income for residential mortgages.
Now Skipton is reverting to its pre-covid lending policy for self-employed contractors and now only requires one month remaining on current contract, reduced from a previous minimum of three months.
The mutual is also made a policy change to buy-to-let pound-for-pound remortages, which will all be calculated using an income coverage ratio (ICR) of 125%, at 5.5% or 5% (if five-year fixed or longer).
John Scrivens, regional manager at Skipton Building Society for Intermediaries, said: “We’re pleased to announce these changes to our lending criteria, to support brokers to help more of their clients own their own homes. It’s all part of our mission to make things easier for brokers.”
Simon Butler, director at mortgage broker CMME, added: “We highly value and welcome the continued support of Skipton in the contractor space, notably their willingness to listen to ongoing feedback around the challenges our clients face in securing a mortgage.
“CMME see more and more of the pre-pandemic six-12 month contracts now offered over three months or less so this is a great change to their already contractor friendly policy that will help many more of our customers.”
