blog.1.image
Finance
26 Apr 2021

Santander release a tonic for self-employed Covid-19 victims!

mohammed
mohammed

Santander to look past the 2020/21 tax year for self-employed borrowers

Santander is excluding the 2020/21 tax year when assessing self-employed mortgage applicants who’ve been adversely affected by the pandemic.

The change means the lender will assess your affordability based on the 2018/19 and 2019/20 accounting periods instead.

The lender will count you as adversely affected by the pandemic if you utilised one of the government support measures, like the Self-Employment Income Support Scheme or the Coronavirus Business Interruption Loan Scheme.

Forward-thinking approach

Santander has received a lot of praise for this change, which is seen as a bold and forward-thinking move by brokers.

It’s been remarked that self-employed people haven’t received the same level of government support as the employed during the pandemic, which means the year could prove to be something of a blip when earnings are being assessed.

Other lenders

After Santander made the announcement there were calls for other lenders to do the same.

Indeed, there are worries that Santander could end up receiving too much self-employed business if other banks and building societies don’t share the burden.

This move is promising, as it suggests self-employed people could be well catered for by the mortgage market as we navigate away from a year ravaged by the pandemic.

Related Mortgage Articles

blog.6.image

The latest Covid measures – Why it’s Not Plain Sailing When Getting a Mortgage

Now the UK is in the midst of a second lockdown, many of the measures put in place due to the pandemic have been extended.

Read Story
blog.6.image

First-Time buyers: The challenges and Solutions in the Current Climate

First-time buyers have to cope with a tightening in mortgage criteria, combined with high house prices and increased competition from other buyers.

Read Story
blog.6.image

How Lenders Will Continue Supporting Mortgage Holders

Mortgage payment holidays, payment plans and canceling interest rates are some ways.

Read Story

COVID-19 update:

We're open and ready to provide mortgage advice!

Icon