We recently discovered that while our RL1 product allowed some missed payments, or unsecured credit events in the profile, 55% of our applicants on that product didn’t have any at all. These findings are in addition to our research that we conducted earlier in the year finding that the impact of the pandemic on earnings has also impacted those self-employed workers with 51% of self-employed people surveyed believing it is now more difficult for self-employed people to get a mortgage compared to a year ago. As a result of these findings we have introduced RL0, an appropriately priced product created to serve the self-employed and those with complex incomes, so if you’ve met with clients that feel left out by high street lenders, you could come to us.

KSP’s

  • We use share of profit before tax plus salary for affordability
  • We consider using previous year’s trading accounts where the most recent year’s accounts have been impacted by Covid, if their last 3 months business bank statements show a return to a similar level of turnover (speak to a BDM before submitting an application)
  • And we consider applicants with just three months of contracting (with 12 months previous employment in a similar role)
  • We accept 100% of bonus, overtime and commission earnings
  • We accept applications with a minimum of 12 months in self-employment
  • For those trading 2 years+ we use their latest year’s figures without averaging

Suggested social post: The Mortgage Lender has announced it has launched a new residential product aimed at supporting the self employed and borrowers with complex incomes.

Quote from Steve Griffiths, Sales & Product Director;

“The self-employed and those with untraditional income streams are becoming more and more common in the UK- but the lending industry has failed to adapt as quickly to this trend. Our new RL0 product range will offer competitive pricing for borrowers that don’t have adverse credit history but do have complex incomes. We are pleased to be supporting these customers by taking a RealLife approach to affordability such as using pre covid accounts where appropriate, as well as 100% of bonus and overtime for employed borrowers.