Mortgage Broker Tools has upgraded its affordability platform by introducing bespoke calculations for borrowers who earn income through the construction industry scheme (CIS) and umbrella companies, as well as buyers who use joint borrower sole proprietor (JBSP) products.

The research platform for brokers says the move boosts its market coverage, which currently includes more than 40 residential and 66 buy-to-let lenders.

Mortgage Broker Tools chief executive Tanya Toumadj says: “More lenders are offering specialist solutions in these areas [CIS and JBSP] and they calculate affordability in different ways, which means a significant divergence in the loan amount that could be achieved by the borrower.

“For example, when it comes to contractors earning their income through the CIS, most lenders treat these applicants as normal sole traders and base their affordability calculation on the net profit figure from each year’s tax returns.

“However, there are now ten of the top 43 lenders that will take the gross weekly wage as if the applicant was employed, rather than the net profit figures.

“This can make a big difference to the loan amount achieved by the borrower. For example, for an electrician earning £225 per day the difference in the maximum loan available could be as much as £ 85,000.

“Halifax used to be the only lender to take this approach, but nine other lenders will now take the gross figure and it is becoming a more competitive part of the market.

“We’re seeing similar competition in the umbrella companies and JBSP space and so it was clear that it was a natural development for the MBT platform to deliver bespoke calculations in these three areas.”