In a video in association with TML, Griffiths (pictured) said: “Typically, as a specialist lender we allow for some degree of adverse in our entry level products, someone whose missed a few payments on credit card or has some historical adverse credit. But what we decided to do is go down a level and have a straightforward complex income product which starts with a two instead of a three.”
In late November, the lender launched the RL0 product range with rates that start from 2.84 per cent and are available across purchase and remortgage categories up to a maximum loan to value of 85 per cent.
The self-employed products will cater to individuals with complex incomes as their employment status may mean they will struggle to secure a mortgage from mainstream lenders.
Griffiths said the lender was also starting to see more Covid impacted accounts coming through where a dip in profits had a knock on effect into affordability.
“So we look at pre-tax from previous years so typically 2020. All we need to see is has the business returned to a reasonable level of turnover, in line with the previous accounts. As long as we can see they’re on that journey we can almost annualise what their turnover is now and take off the cost ratio from the previous set of accounts,” he added.
According to TML, there are over four million self-employed workers in the UK and that number has been growing in the past year.
Our panelists in the second of our series of four videos on complex self-employed incomes post-Covid due to run before the Christmas break, include Steve Griffiths sales and product director, The Mortgage Lender, Greg Cunnington director lender relationships and new homes Alexander Hall and Andrew Montlake, MD Coreco Mortgage Brokers and chairman of AMI.
Sponsored content, in association with The Mortgage Lender
