Aldermore Expands Mortgage Options for Self-Employed Contractors

Aldermore has expanded its mortgage options to accommodate self-employed contractors, enabling them to be assessed for affordability on an employed basis using gross income.

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Aldermore Expands Mortgage Options for Self-Employed Contractors

Aldermore has announced an expansion of its mortgage proposition to accommodate self-employed contractors who work via a limited company or sole trader. This move enables these individuals to be assessed for affordability on an employed basis using gross income.

Applying for a mortgage as a self-employed contractor just got easier

To qualify, prospective buyers must have either 12 months’ history as a contractor or 24 months in the same line of work, providing there are two months remaining or a renewal agreed. Income for contractors will be determined based on the day or hourly rate of their current contract, multiplied across 46 weeks.

“We know homebuyers have more varied and complex circumstances than ever before, especially those who are self-employed contractors.” - Jon Cooper, director of mortgages

Aldermore’s flexible approach for people who are sometimes overlooked enables us to back more customers on their individual merits and enable them to get the mortgage that’s right for them.

Self-employed contractors can now access mortgages with more flexible criteria

All contractors will have access to Aldermore’s standard mortgage products, up to 90% loan-to-value (LTV) for self-employed contractors, and up to 95% LTV for those working via an umbrella company or a fixed term contract (FTC). The lender has a range of adverse criteria that can be considered for contractors who may need further flexibility.

This expansion follows the recent growth of Aldermore’s owner-occupier range, designed to serve the underserved including first-time buyers, the self-employed, and those with less than perfect credit histories.

Aldermore’s expanded mortgage options cater to a wider range of customers

Aldermore’s commitment to backing more customers on their individual merits is a welcome move for self-employed contractors who often face challenges when applying for a mortgage.