Self Employed Propositions continue to improve
Following their enhancement of their Buy-To-Let proposition last week, this week NatWest have improved their Self Employed proposition. NatWest along with a few other high street lenders are now happy to accept Self Employed applicants who have previously received SEISS grants from the Government’s COVID support package. However with NatWest, the last grant needs to be over 3 months old.
They are continuing to take an average of the last 2 years income, or the most recent if it is lower and will no longer need a Mandatory Self Employed Submission Sheet which they introduced as a result of COVID-19 last year. Coventry Building Society are another high street lender who are happy to accept the SEISS grants, but will deduct it from the annual income if it has been used to calculate the profit for the year. Coventry’s self employed proposition continues to be one of the most generous on the market for Limited Company directors, where they take a share of net profit along with salary (opposed to dividends and salary which majority of the high street lenders base their calculations on) allowing the Self Employed directors to use retained profit in their earnings to increase their mortgage lending ability.
Flexx products available at Coventry Building Society
Flexible rates with a fixed interest but no early repayment charge could proof popular during unknown times ahead. Coventry Building Society are one of the only lenders currently offering fixed rates without a tie in and currently have both 2 and 5 year fixed rates with No Early Repayment Charge at all if the mortgage is repaid in full during the fixed period.
The products are not aimed to be used as a bridging product, and Coventry’s underwriters are cautious with any applications that look to be short term lending. But instead the Flexx rates are available to offer security via a fixed monthly payment to clients who might be planning to sell further in the future or may need to remortgage and release capital in the future, or maybe even first time buyers who are moving in together for the first time. Ask your advisers for more information!
