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HSBC loosens criteria to boost contractors and agency workers

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  • 05/09/2019
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HSBC loosens criteria to boost contractors and agency workers
HSBC has announced a series of changes to its lending criteria which it claims will help contractors and workers on zero hours contracts to borrow.

Changes include reducing the required amount of continuous employment with the same employer from two years to one year, and replacing the need to produce two years of P60 documents with simply the latest P60.

However, the last three payslips will be required rather than just one.

The lender said it was moving to relax certain conditions for required documentation following feedback from brokers and borrowers, and argued the new system would make earnings calculations more accurate.

Aaron Shinwell, head of mortgages and savings at HSBC, pointed to the fact that around two million contractors, working an average of 25 hours a week, are believed to be on zero hours contracts, and their needs shouldn’t be ignored.

He continued: “What we have done is take on board feedback that certain requirements and documentation were hindering zero hours contractors’ chances of getting onto the property ladder, or remortgaging, with us, and as such our attractive mortgages were not really an option. These improvements will benefit all agency workers.”

Alongside the criteria changes, HSBC has revealed it is cutting up to 0.35 per cent off a selection of rates. These include a five-year fixed rate at 60 per cent loan to value which will now be available at 1.59 per cent, with a £999 fee. 

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