Pepper Money has reported an 87% rise in the number of self-employed mortgage completions in 2018, compared with the previous year, following a number of criteria enhancements.
In 2018, the specialist lender introduced several improvements to its self-employed proposition, including the use of the latest year’s net income in affordability calculations and additional allowable income considerations, such as expenses add-backs, directors’ car allowance, directors’ pensions contributions, use of home as office and private health insurance.
This also resulted in an 84% rise in the value of completions at Pepper Money.
These trends have continued into 2019, with the lender reporting 26% more self-employed completions and 64% more self-employed DIPs in January this year compared with January 2018.
“The growth of self-employment has been a prominent characteristic of the UK economy in recent years and, as every broker knows, self-employed clients tend to be more interesting cases,” said Paul Adams, sales director at Pepper Money (pictured above).
“With so much diversity in the way that business owners draw their income, a cookie-cutter approach to self-employed borrowers is rarely going to fully account for their true earnings.
“This is why we worked hard at Pepper Money to improve our criteria for self-employed applicants and to support this criteria with our team of specialist underwriters.”
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