Halifax has loosened its affordability assessment criteria for contract workers.
Borrowers who have a contract in place paying at least £500 a day or £75,000 a year, and can prove at least one year’s contracting experience in their chosen field, can apply for a mortgage from the lender’s core range. The change applies to all broker introduced borrowers from 15 May and will apply to direct customers from 1 June.
Previously, affordability was only assessed in this way for IT contractors, whereas all other contractors would have had to supply three years’ worth of accounts to prove affordability.
Borrowers who are not employed on a contract basis will still be required to provide three years’ worth of accounts.
A Halifax spokeswoman says: “We have reviewed our policy relating to professional contract workers to ensure it remains accessible to customers in this growing market. The updated assessment criteria, previously only available for those working in IT, now means we will be better placed to help more contractors.”
Freelancer Financials managing director John Yerou says: “This is a major milestone for the UK’s freelance community as it unbolts the contract based mortgage market to any professional freelancer.”