MOVES to help make it easier for the self-employed to secure a mortgage have been welcomed by a leading property association.

Nationwide announced last month that they were allowing self-employed workers to borrow up to 4.49 times their income, a switch which experts say will help many to secure a property.

And the National Association of Property Buyers is now urging other banks to follow suit.

Spokesman Jonathan Rolande said: “The NAPB welcomes this move to help the self employed secure a mortgage. The increase gives an additional 12% buying power on a mortgage for a self-employed person. “There will be exceptions of course but, in general, self-employed people are financially savvy and as well as having an income, have an asset that often has a value itself – their business.

“Yes, there is a risk that work dries up, or that the business fails but that applies to employees who work there, many of whom may have a mortgage with as high a multiple.”

“There are other plus points too. Self-employed buyers usually face stricter checks on their business, assets and lifestyle. They also have the advantage of knowing often months in advance if their business and income look in jeopardy. That allows them time to plan ahead, a luxury employees do not share.”

Nationwide say that under their new rules, someone earning £80,000 can now borrow up to £359,200. That is £39,200 more than when the limit was four times earnings, although they will still not get a loan for more than 85 percent of the value of the property.

Applicants will normally need to provide two years’ evidence of income.

It comes four months after Halifax said that self-employed workers earning at least £75,000 could borrow 5.5 times their income.

The self-employed face more paperwork when applying for a mortgage because their incomes are the most uncertain. They tend to be the first to face lending restrictions in tougher economic times when banks put a squeeze on borrowing.

During the pandemic banks asked for higher deposits and offered loans at lower salary multiples, but despite the cost of living crisis and higher mortgage rates, banks have actually been making it easier for people to take out larger loans.