Pepper Money Enhances Criteria for the Self-Employed
As part of their Fresh Criteria, Pepper Money has enhanced its criteria for self-employed borrowers.
To assess affordability of self-employed applicants, Pepper Money will now use the latest year’s figures rather than an average of the last two.
This move will benefit business owners, entrepreneurs and sole traders who have seen their income increase in the last year.
Earlier this year, Pepper Money announced that it would accept additional income considerations, including expenses add-backs, directors’ car allowance, directors’ pension contributions, use of home as office and private health insurance.
Rob Barnard, Sales Director at Pepper Money, said: “The growth of self-employment shows no sign of slowing with more than 4.8 million people self-employed at the end of 2017 [i]. For the owners of growing businesses, the ability to use latest year’s net income, rather than an average of previous years can make a significant difference to how much they can borrow. With this latest enhancement to our criteria and the improvements we made earlier in the year, Pepper has become a much more interesting choice for your self-employed clients.”
The interesting case of the married couple and the unsecured debts
It’s not unusual for clients to be declined a mortgage by the high street, despite being able to afford mortgage repayments. These could be for various reasons such as credit blips, previous financial difficulties or complex income.
Pepper Money’s recent case study of The interesting case of the married couple and unsecured debts, shows exactly how specialist lenders could be able to support your clients when the high street can’t.
Gavin and Linda had a mortgage of £148,000 on their property, valued at £275,000. They had a large amount of unsecured debt and decided to remortgage their home to help pay these off.
However, they were declined a mortgage by the high street due to their credit score although they had good income and a strong payment profile.
Find out how they were able to secure a mortgage by reading the full case study.
Dudley Building Society have released a Later Life Lending Guide with a view to having a single point of reference for product and criteria information.
The downloadable PDF includes quick reference tables to clearly define the Society’s approach to older borrowers, supporting partners from across the country to provide swift and informative advice to its clients. The case studies that feature in the guide highlight the strength and importance of quality advice and skilled, tailored underwriting. This is a great tool when looking for a solution for clients who are later on in life.
Speak to TFC about all our later life lending solutions.