Mortgage Outlook: Santander launches mortgage calculator for self-employed borrowers affected by the pandemic

Santander will be launching a mortgage calculator for self-employed borrowers whose businesses have been affected by Covid-19, it has been reported by Mortgage Solutions. Earlier this month, it was announced that brokers will exclusively be able to use the calculator for ‘Covid-affected’ clients who want to disregard their 2020/21 accounts because the pandemic has damaged their earnings, to find out how much the bank is prepared to lend.

The bank has changed its lending policy to exclude the 2020/21 tax year for self-employed borrowers who have suffered an out of the ordinary loss of earnings. However, said Santander, also refers to Covid-19 affected borrowers as those who have relied on one of the government’s support measures such as the Self-Employment Income Support Scheme or the Coronavirus Business Interruption Loan Scheme, or a tax deferral.

The lender said it will be taking into account future Covid-19-related liabilities and they will be treated as a business commitment. An additional layer of criteria means that to be accepted under Santander’s Covid-19 accounts exception, businesses must have been trading for at least 90 days after reopening.