Among the big banks, Halifax, Barclays and Clydesdale have all adjusted lending criteria. Smaller building societies, such as Ipswich, Newcastle and Saffron, are opening their doors to applicants without a guaranteed monthly pay cheque. In addition, a group of specialist lenders, most recently joined by Secure Trust, are ready to lend.
Home loan hurdles
The self-employed and small business owners have historically been required to produce at least two years of audited accounts to qualify for a mortgage – often three. So during the last housing boom “self-cert” loans were devised as an alternative whereby lenders accepted the borrower’s word about their income. These were abolished in the wake of the financial crisis.