In a bid to offer self-employed borrowers more flexibility when applying for a mortgage, the bank has reduced its minimum account criteria from two to one years and will consider retained profit within the business when assessing affordability.
Charles Haresnape (pictured) Aldermore’s group managing director, mortgages, said: “There’s a growing demand for a tailored approach for self-employed applicants and their needs. As they often do not fit the norm for many high street lenders, it can be a real challenge for them to receive the financial support they need to buy a home. Self-employment now accounts for 15% of the UK’s employed market, and we are consistently working to make sure the process of applying for a mortgage is as straightforward as possible.”
Applications should be accompanied by one year of accounts prepared by a suitably qualified accountant or an accountant’s certificate, or an SA302 and accompanying tax overview documents obtained from HMRC.
Aldermore will consider using the latest years’ profit figures rather than an average of the last two years when making the assessment, if net profit is level or rising.
Haresnape added: “We have always listened carefully to our brokers and customers to ensure our product range can offer the best possible solution for each applicant’s unique situation. One in four Aldermore mortgages comes from a self-employed person and I feel the change to our mortgage criteria will help make the process much easier for our self-employed customers to apply for a mortgage, whilst providing them with the support they need.”