Beverley Building Society has launched a range of mortgages for contractors in the gig economy.
The mutual says this area of work covers around 4.5 million workers who are “now employed on a less traditional, nine-to-five basis”.
It adds: “We have enhanced our mortgage offering to cater specifically for the breed of professionals ranging from NHS workers to providers of online translation, data analytics and design services – now thought to account for almost 12% of the economy – people on zero-hours contracts and those employed by a new breed of umbrella companies, for whom moving from role to role and contract to contract is a fact of life.”
The highlights of the mutual’s contractor mortgage range include:
* Borrowers can choose from any product in the building society’s current range, depending on circumstances, up to a maximum LTV of 80%
* Day 1 contracting mortgages for NHS and medical professionals with a 12-month track record of earnings in a related field
* Zero-hours contract mortgages for people in professional occupations with 12 months’ history with no gaps; and non-professionals with a minimum of two year’s track record and no gaps in the last 12 months
* All forms of contractors considered including construction industry scheme members, agency, nursing bank, fixed, temporary and short-term contracts, IT consultants and self-employed contractors, all considered on a case-by-case basis, from one year’s contract with evidence of track record in a related field
* People employed by umbrella companies with evidence of one year’s track record in a related field
* The mutual says it will not use credit scoring, but instead make its lending decisions on a case-by-case basis, backed by individual underwriting
Beverley Building Society head of new business lending Simon Glass says: “The so-called ‘gig economy’ is a fact of today’s working environment which is clearly here to stay, and we believe we are perfectly placed to help the growing number of people who are either choosing, or forced, to earn a living in this kind of more flexible way.
“Our ability to take the time to review each case thoroughly, on its merits, and make common-sense lending decisions on the back of that, is perfect for these kinds of borrowers who are considered less ‘vanilla’ by bigger lenders which rely on automated, tick-box decision-making.”
