The Cambridge Building Society has launched two self-employed mortgage products to help workers who have started a business during the pandemic buy a home.

The mutual says the mortgages are available to entrepreneurs who have successfully started a business, hold one year of financial records and have a 20% deposit.

It adds that both loans are two-year mortgages, starting at 2.84% with a maximum loan of £400,000, and can be used for remortgages and additional borrowing.

The lender also requires evidence that the applicant has previous experience within the same sector and needs two years evidence of their former employed income.

It also needs a projection for the second year’s trading of the new business provided by a qualified accountant.

There are 4.4 million self-employed workers in the UK, according to the latest Office for National Statistics data released in May.

The mutual says: “Around 3 per cent of self-employed people have started working for themselves since April 2019, with more thought to have done so as a result of changes in working patterns brought about during the coronavirus pandemic.”

The Cambridge Building Society underwriting manager Liam Flaherty adds: “We saw anecdotal evidence of the self-employed being hit hard by the Covid crisis.”

“The self-employed appear to have experienced a greater drop in earnings, compared to employed workers.

“As experts in homes and housing, being a responsible lender and a support to local communities, we felt we needed to offer products that made it easier for this group to access funds for a home.

“I am not aware of other lenders offering this type of mortgage, and know that it will enable more people to access funds.”

“The majority of other lenders require a minimum of two years of accounts, a 25 per cent deposit, and evidence of future earnings.”