Beverley Building Society is offering its ‘Bounce Back’ mortgage initiative featuring fresh criteria to help some of the five million-plus workers, many of whom have been affected, achieve their homeownership aspirations and get their businesses back on track.
Potentially open to people with just one year’s trading history, the new initiative is aimed at helping both established and newly self-employed people. The products available include the potential for owners of established businesses to start with lower, interest-only based payments for the first 12 months, to allow some breathing space for professionals, contractors and tradespeople who need it.
Details are as follows:
- From one year’s accounts up to 75% LTV for the newly self-employed
- First 12 months’ payments interest-only and LTVs of up to 80% considered for established businesses
- Range of discounted two and three-year deals available
- Affordability calculated on capital & interest basis
- Lending decisions made on basis of longer-term trading track record, industry, professional qualifications and experience and future prospects
- All trades and professions considered
- People whose business has been temporarily impacted by the pandemic welcome to apply.
The society says it was prompted to respond after feedback from brokers highlighted a real need for solutions to help the significant number of self-employed borrowers struggling to secure mortgages because many lenders have frozen them out, viewing them as high risk. Brokers have suggested that this view is short-sighted, however, given that in many cases a strong trading track record overall and a “resilient spirit”, makes them positive prospects for lending despite recent developments.
Graham Carter, head of lending at the Beverley, said that the product expands on the help the society is already committed to offering people with complex incomes, including the self-employed, who last year accounted for 50% of the Beverley’s lending.
He added: “As a smaller Society, our approach is based on being able to take the time to really listen to people’s whole stories and make common-sense decisions on even the most complex cases, in order to do our best to help.
“Mortgages for self-employed people are among a range of niches we specialise in, alongside self-build, later-life and family-assist packages and lending on unusual properties.
“Essentially, we’re always keen to think outside the box, and do our utmost to help, and seeing the impact this crisis has had on this vital segment of the UK economy, we just felt like we needed to step in, and came up with this new offering to do exactly that.”