Lenders ease criteria for self-employed borrowers

by Aaron Strutt

Nov 04 2011

Many self-employed borrowers have found it difficult to get a mortgage since the start of the credit crunch, but lenders are loosening their lending criteria.

Northern Rock will now accept self-employed borrowers with two years accounts. It previously required the self employed to have been trading for at least three years. Leeds Building Society has also made changes and borrowers will need one years accounts and a projection for the second years trading to qualify for a mortgage.

Aaron Strutt, a broker at Trinity Financial, says: “Most lenders require two years accounts if you are self employed, but others will work with one year's accounts.

“Kensington Mortgages are one of the only lenders happy to lend with just one year's accounts. Their lowest two-year rate is fixed at 3.99% and they ask for a 25% deposit.

“Halifax may also look at the self employed if they have one years accounts although they will need a really good credit score. They offer a three-year fixed rate at 3.64% for those with a 40% deposit.”

Both mortgages mentioned have a £999 arrangement fee.

04 November 2011