Halifax changes self-employed mortgage criteria

Halifax Intermediaries has cut the income information required for self-employed borrowers from three to two years.   The lender will continue to

Halifax Intermediaries has cut the income information required for self-employed borrowers from three to two years.  

The lender will continue to consider applications from people who have been self-employed for less than two years but at least one full year, referring such cases to be reviewed by an underwriter.

Ian Wilson, head of Halifax Intermediaries, said: “There are almost five million self-employed workers in the UK and almost 40 per cent of employment growth has come from the self-employed or small business owners over the last decade.

“Adapting our policy to support self-employed people is part of our ongoing commitment to making it easier for brokers to do business with this key market segment.”

Michelle Lawson, director at Hampshire-based Lawson Financial, said: “Halifax are pretty strong for the self-employed, on the whole. There is still more work to be done, but it is certainly a step in the right direction.

“Not everyone draws money out of the business. Some of the other lenders will look at pre-tax profits and what funds are available whether they have drawn on them or not. I think it is a better way of assessing applications.”

simon.allin@ft.com

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