Back to December 2014

Society amends lending criteria for self-employed borrowers

Lending criteria for self-employed borrowers has been amended by Leeds Building Society.

The Society has changed some of its income requirements for self-employed people:

  • When using three years’ accounts, the Society will accept the average of the last three years’ figures;
  • When using two years’ accounts, due to the length of trading, the Society will accept the average of the two years’ figures;
  • The previous reference to the 10% variance in annual profits has been removed.

Continuously falling profits, year-on-year, are not acceptable and the underwriter must be satisfied about the sustainability of income from the business. “We keep our lending criteria under review to ensure they’re appropriate for us as a business but also that they work for borrowers,” said Martin Richardson, Leeds Building Society

“We are particularly keen to support borrowers in under-served markets, such as professional contractors and the self-employed.”


Notes to Editors

An updated copy of the Society's Broker Guidance incorporating these latest lending criteria changes can be found on our Intermediary website,

To discuss a new case with one of our mortgage development team, mortgage introducers should go to our Intermediary website to find details of their nearest Business Developer contact.

Leeds Building Society has won four awards for innovation this year, including being named ‘Innovator of the Year’ at the Moneywise Magazine Mortgage Awards 2014 for its Welcome Mortgage. This allows borrowers to pay 0% interest for the first few months of their term so they can free up cash to help them settle into their new home.

The Society scooped the ‘Mortgage Innovation Award’ and was named ‘Most Innovative Personal Finance Provider’ at the Moneynet Personal Finance Awards 2014, and also received the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2015, in addition to being named ‘Best Intermediary Lender’ for the second consecutive year and receiving the award for ‘Best Use of Technology (Lenders)’.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.1bn (as at 30 June 2014). The Society has operated from the centre of Leeds since 1886.