Aldermore has expanded its mortgage proposition to accommodate self-employed contractors that work via a limited company or sole trader, enabling them to be assessed for affordability on an employed basis using gross income.
Prospective buyers must have either 12 months’ history as a contractor or 24 months in the same line of work, providing there are two months remaining or a renewal agreed.
Income for contractors will be determined based on the day or hourly rate of their current contract, multiplied across 46 weeks.
All contractors will have access to Aldermore’s standard mortgage products, up to 90% loan-to- value (LTV) for self-employed contractors, and up to 95% LTV for those working via an umbrella company or a fixed term contract (FTC).
The lender has a range of adverse criteria that can be considered for contractors who may need further flexibility.
This followed the recent expansion of Aldermore’s owner-occupier range, designed to serve the underserved including first-time buyers, the self-employed and those with less than perfect credit histories.
Jon Cooper, director of mortgages, added: “We know homebuyers have more varied and complex circumstances than ever before, especially those who are self-employed contractors.
“Aldermore’s flexible approach for people who are sometimes overlooked enables us to back more customers on their individual merits and enable them to get the mortgage that’s right for them.
“If the loan makes good sense, we will always strive to make it work and find a solution.”
