Share of net profits for self-employed limited company directors and income from zero-hours contracts for specific key workers are now considered
Accord Mortgages has made changes to its criteria to allow additional income types considered in providing loans to its borrowers.
From today, the lender will use the share of net profits for self-employed limited company directors and income from zero-hours contracts for specific key workers, as well as some benefits, in calculating loans.
The intermediary-only lending subsidiary of Yorkshire Building Society is now allowing 100% of limited company directors’ salary and share of profits as an alternative to their directors’ salary and dividends, where they have more than a 50% shareholding in their company.
It will also consider 60% of zero-hours contractor income for key workers such as NHS bank nurses and locums, care home workers, supermarket employees, HGV drivers, retained and on-call firefighters, armed forces reservists, and supply teachers.
#brokers, we’re delighted to now be able to accept additional income types including zero-hour contracts for specific keyworkers, limited company directors’ salary & their share of net profits, & some benefits including. See our criteriahttps://t.co/nMRb70SQNM pic.twitter.com/eC4s7dRjug
— Accord Intermediary (@AccordMortgages) August 30, 2023
The lender said up to 100% of income from annuities could also be considered in applications, and up to 60% of the following benefits could be taken into account for borrowers who had a main income which exceeded the total of their benefits: personal independence payments, industrial injury disablement benefit, carers allowance, national insurance contributions-based employment support allowance, and disability living allowance.
These changes apply to buy-to-let and residential mortgage applicants, where their personal income is being factored in for top slicing purposes.
“We’ve listened to our brokers and researched the market to pinpoint some of the measures that can best help them to help their clients who have more complex incomes, while continuing to lend responsibly,” said Nicola Alvarez (pictured), senior manager of new propositions at Accord Mortgages.
“This builds further on our commitment to common-sense lending, and we hope this latest list of changes provides some additional flexibility to assist more brokers to support people in achieving their homeownership aspirations.”
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