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Cambridge BS launches self-employed mortgages for pandemic entrepreneurs

  • 07/09/2021
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Cambridge BS launches self-employed mortgages for pandemic entrepreneurs
Cambridge Building Society has brought out two self-employed mortgages for borrowers who have started a business during the pandemic.


It includes a two-year fixed rate of 2.99 per cent, and a two-year discounted rate of 2.84 per cent. This is 2.05 per cent lower than the standard variable rate.

Both are available for remortgage and purchase up to 80 per cent loan to value (LTV), with a minimum loan size of £20,000 and maximum loan size of £400,000.

The mutual requires one year’s accounts, whilst most other lenders ask for two years.

Borrowers need to show previous experience in the same sector and two years’ evidence of former employed income as well as a projection of the second year’s trading.

Liam Flaherty, underwriting manager, said: “The self-employed appear to have experienced a greater drop in earnings, compared to employed workers. As experts in homes and housing, being a responsible lender and a support to local communities, we felt we needed to offer products that made it easier for this group to access funds for a home.

“I am not aware of other lenders offering this type of mortgage and know that it will enable more people to access funds.”

Self-employed borrowers have increasingly come under scrutiny in the past few months as the pandemic took its toll on earnings.

Some lenders restricted lending to borrowers who took Self-Employed Income Support Scheme grants, classing them as a higher risk.

Most lenders now accept business owners who took out government grants more than three months ago.

HSBC, NatWest, TSB, Halifax and Kensington have all made changes in recent months.

However, many self-employed borrowers remain pessimistic about their borrowing ability, with just over half of those surveyed by The Mortgage Lender in July saying it will be more challenging to secure a mortgage because of their employment status.

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