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.
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.
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.