Santander has updated its Self-Employed Policy which will affect residential applications for self-employed people.
From April 11, Santander will take an average of the revenue figures for the last two years, or the last year if lower.
For existing Santander mortgage customers moving, it was explained that underwriters may be able to use a more individual valuation.
The bank will still limit applications where any applicant is self-employed to 75% LTV, excluding existing mortgage customers who move.
As part of the changes, the definition of business impacted by Covid-19 will only capture details of outstanding support loans. The Covid question will be removed and replaced with one confirming Bounce Back Loans (BBL) or Coronavirus Related Business Interruption Loans (CBIL) in progress.
Santander has confirmed that any undisclosed responsibility of BBL/CBIL will result in a denial decision.
Requirements for submitting proof of income have also been simplified with an updated accounting certificate, which went live on March 30.
Applicants providing the updated accountant certificate will no longer need to provide company bank statements.
Where clients have outstanding BBL/CBIL, underwriters will continue to consider redemptions in the affordability assessment. The additional information entered on the accountant’s certificate can support a more detailed individual assessment.
Any Complete Mortgage Applications (FMAs) already submitted before the close of business on April 9 will not be affected by these changes.
However, FMAs submitted on or after 6 a.m. on April 11, or where a material change is made to an FMA submitted before the close of business on April 9, will be assessed using its new updated policy. .
Santander said the changes will be reflected in Introducer Internet, its affordability calculator and guide to evidence requirements.