New Mortgage Loan woe’s for the Self-Employed

Mortgage lenders are always changing their lending terms during the pandemic with some banks are now refusing to provide mortgages to self-employed workers if they took coronavirus support loans or income grants, despite the Government and Financial Conduct Authority saying the payments would not affect credit ratings.

With some banks now referring applications from the self-employed to their manual underwriters automatically, meaning fewer self-employed people are being granted a mortgage at the level they are requesting, analysis shows that Santander is limiting its mortgage products to 60% loan-to-value for the self-employed, while NatWest will ignore debts being cleared for employed borrowers when assessing affordability on a mortgage application but will still factor them in for the self-employed.

TSB limits new self-employed borrowers to mortgages with a maximum LTV of 75%, Halifax has placed limits on how much the self-employed can borrow, Metro Bank requires more bank statements from the self-employed than other applicants and Nationwide is limiting its 90% mortgage products to salaried employees only, the market changing all the time, give us a call on other lenders deals.