The move sees the society push the maximum amount available from £350,000 to £500,000. Where zero-hour contractors apply for loans with a maximum loan to value of 75%, they will also have access to the society’s standard product range. Above this level zero-hour contractors apply for its specialist contractor product with a loan-to-value of up to 90%.
The change follows that made at the beginning of March this year when Ipswich amended its lending policy to allow credit worthy zero-hour contract workers access to its range of mortgage products.
At that time Richard Norrington, chief executive of Ipswich Building Society, said: “Zero-hour contract workers have limited choices for mortgage borrowing. We are continuing to improve our products and introduce new programmes to help those who are creditworthy, yet marginalised by mainstream mortgage lenders.”
He added: “We believe that ‘mortgage misfits’, such as those who are on a zero-hour contract and can demonstrate a consistent income, should have the same level of options and access to the mortgage market as any other applicant.”