Nottingham Building Society has announced a string of changes to its mortgage criteria which it has said will expand eligibility for a broader range of clients.
The changes relate to how the building society deals with mortgage applications from customers who work as contractors, with the aim being to make it easier for them to secure a mortgage.
The first change being introduced will see the minimum length of time a contractor must have worked on fixed-term contracts in the same profession reduced to 12 months.
In addition to this, there is now no minimum time required on their current contracts, while contractors working via an umbrella company are acceptable using 46 weeks income.
Commenting on the changes, Nottingham Building Society Sales director Alison Pallett, said: “We’re excited to be able to adapt our criteria for contractors, as we continue to help more people achieve their dreams of home ownership.
“The world of work is evolving; from construction to health and social care, more and more people work on contracts, and it is imperative that the industry reacts in tandem - especially as contracting allows greater flexibility within the workforce.”
Pallett noted that further changes are in the pipeline and will be announced soon.
Elsewhere in the mortgage market, product availability remains reduced as interest rates have edged further upwards.
According to Moneyfacts, the average two-year fixed residential mortgage rate today is 6.15 per cent, up from 6.07 per cent yesterday.
Lenders have continued to pull products this week and increase rates, with Virgin Money contacting mortgage advisers yesterday with the news that its residential two-year fixed product would be increasing by 0.6 percentage points starting from 5.66 per cent.
Its five-year fixed rate product was also increased by 0.40 percentage points to 5.10 per cent.
jane.matthews@ft.com
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