Newcastle Intermediaries has brought in new requirements for mortgage lending to self-employed borrowers.
In addition to existing requirements, the society is now requesting the last three months business bank statements from borrowers that clearly demonstrate current trading levels.
The lender already asks that self-employed borrowers have a business that has been trading for a minimum of three years and income evidenced by either the last two year’s accounts or the last two years SA302’s tax calculations and corresponding overviews or a completed Accountant Certificate.
In a note to brokers, the society says: “In the current climate, we are continuing to review our underwriting approach across all areas. As part of these reviews, we have considered how we can ensure continued support with self-employed applications, while acknowledging the challenges that businesses are facing at the moment.
“We are happy to consider applications where grants and support loans have been taken but the principle requirement will still be the evidence around current trading levels. We cannot consider applications where businesses are currently closed. Accountant’s commentary and underlying business strength can be factored into decisions and there may be more questioning around self-employed cases generally that could incorporate further information around details such as sector to understand how this has impacted trading.”
The changes come into effect from today, 19 June.
Source – Mortgage Strategy 19/6/2020