Nationwide increases mortgage income multiple from 4 to 4.49x salary for self-employed borrowers
Nationwide for Intermediaries has increased the income multiple it uses to work how much self-employed applicants can borrow.
The building society has raised its multiple from four times salary to 4.49% times single or joint income.
Self-employed borrowers will need a 15% deposit to qualify for a mortgage with Nationwide.
Aaron Strutt, product director at Trinity Financial, says: "It is good news that Nationwide has increased the amount it will lend to the self-employed, but other lenders have more generous policies for business owners.
"Trinity Fiancial's brokers have access to lenders offering up to 5.5 times salary for the self-employed, and they do not have different acceptance rules if the borrower is employed or running their own company."
What is Nationwide’s self-employed mortgage criteria?
A minimum of two years trading accounts is required from self-employed applicants. For sole traders and partnerships, the building society will need the last two years' income and it will use the lower of the most recent year's net profits or the average of the last two years' net profit figures.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Yes, Nationwide will lend to limited company directors and business owners. It will either use the lower of the most recent year's salary and dividends or the average of the last two years' salary and dividends.
This can be confirmed via an HMRC tax assessment or an accounts certificate. The latest years end cannot be more than 18 months ago.
Yes. Nationwide can provide a mortgage if you have been self-employed for less than two years but work as part of a business that has been established for longer and now own a share of the business or has become a partner in the firm.
The lender will need a letter from the Senior Partner, Accountant or Practice Manager. They will need to confirm that the partnership is well established and the date the applicant became a partner and their expected income in the next 12 months.
Yes. If an applicant is a fixed term contractor and has been trading on a self-employed basis for two or more years, Nationwide will lend based on certain conditions depending on whether they are employed or self-employed.
If the applicant has 12 months working via an umbrella company Nationwide will them as a fixed-term contractor.
Nationwide's maximum mortgage loan size is £1 million on most of its products.
This rises to £2 million and then £5 million on selected products.
This is the same for employed and self-employed borrowers.
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