Skipton Building Society has changed its income policy for self-employed contractors, meaning they are now treated the same as employed borrowers.
Acting upon feedback from its broker partners, Skipton’s income policy for self-employed contractors will now enable brokers to calculate their client’s income as client’s daily rate x5 x48 weeks as employed income rather than self-employed income.
Paul Darwin, director of intermediary relationships said: “With over 1.8 million self-employed contractors in the market, we understand the difficultly this group of workers can face when applying for a mortgage.
“This has been a hot top within the broker community and it’s something we’ve been intently listening to at Skipton.
“We are committed to supporting our broker partners and we regularly act upon the feedback we receive.
“By making these improvements to the income policy for self-employed contractors, this highlights the ways we’ll adapt and improve our services to best suit the needs of both our broker partners and their clients.”
Before brokers use this calculation they must ensure their client meets the following criteria:
The client must have a minimum of two years’ experience in their chosen profession and one years’ contract history and a minimum (using daily rate) of £50,000 per annum.
And the client must provide a CV to confirm 2 years’ experience, a copy of previous contract(s) (covering a minimum of one year) and a copy of their current contract.
They must also show their latest monthly business bank statements,latest monthly personal bank statements and a signed E-declaration.