Principality changes contractor mortgage criteria to reflect changing market.

The contractor mortgage market is changing and Principality Building Society is changing with it.

The lender has recently amended its lending criteria for contractors and the self-employed.

For sole trader applicants seeking to apply for a mortgage of up to 75% LTV, applications will be assessed using figures from the latest year’s accounts.

For sole traders seeking 75% LTV and above, an average figure generated from the last two years’ accounts will be used when determining affordability. Two years history is now being accepted instead of three.

For those who are labour-only contractors, one year’s accounting is acceptable as long as there have been no more than two different employers within the prior 12 month period.

There are a number of lenders who already have very flexible mortgages with underwriting processes that are specifically tailored to the contractor or the self-employed. Processes and requirements vary though, from lender to lender, and where one may suit you and your circumstances, another may not.

Approaching a lender who doesn’t have the right lending criteria for your needs could hamper gaining approval on subsequent mortgage applications. Therefore, it is imperative that you consult with expert mortgage broker, Deal Direct, and receive the right advice first time.

Compare contractor mortgage rates and lending criteria with Deal Direct.

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