Accord Mortgages has today (31st August 2023) expanded the types of acceptable income it will consider when deciding how much to lend to a potential BTL or residential borrower.
The additions include utilising 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.
The changes — which apply to BTL and residential loans where their personal income is being factored in for top slicing purposes — aim to offer brokers more options to help their clients meet affordability requirements.
For limited company directors, all of their salary and share of profits are now allowable as an alternative to their directors’ salary and dividends, where they have more than a 50% of shareholding in their company.
For zero-hours contractors, 60% of their income will be considered for NHS bank nurses and locums, care home workers, supermarket employees, HGV drivers, retained/on-call firefighters, armed forces reservists and supply teachers.
Annuities are also included, with 100% of their income being considered.
Nicola Alvarez, senior manager of new propositions at Accord, said: “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.
“We hope this latest list of changes provides some additional flexibility to assist more brokers to support people in achieving their homeownership aspirations.”
