Personal touch means lenders can support those with complex employment circumstances

Attitudes among mortgage lenders have shifted somewhat in recent weeks. The mini Budget, and its impact on the swap markets, meant that lenders understandably felt the need to reprice their products.

However, in many cases this was accompanied by a shift in criteria too, with lenders taking a more wary approach towards applications.

This has only added to the fact that certain borrowers, or rather elements to their application, can all too often be viewed in an overly cautious manner. There is no shortage of lenders, particularly those on the high street, who are happy to employ a tick box approach when it comes to assessing a mortgage application. If there is anything about the application that falls outside the strict parameters of the lender’s criteria, that alone is apparently enough to turn them down - the very embodiment of ‘computer says no’.

A perfect example here centres on the borrower’s employment status.

The end of the nine to five

The reality is that the working world has changed. The days of working for the same employer for decades is behind us - a study by AAT a couple of years ago found that the typical worker will have six different job roles, potentially all with different employers, across their career. They may also opt to take a break from employment, whether to travel the world or care for their loved ones.

Even the nature of the work has shifted. Just look at the growth of things like zero hours contracts, which - while undoubtedly controversial - appear to have a place for workers who need some flexibility over their working hours.

There are plenty of would-be borrowers who may be on these contracts, or simply have a shorter period of employment than others, and who could still make perfect borrowers with an excellent record with credit, and the space in their finances to make the repayments.

Yet for some lenders, their more complex employment position makes these hopeful homeowners too risky. The fact that they aren’t working in a traditional nine-to-five is viewed as reason enough to step away from supporting them with their financing needs.

Making Versatility more than just a buzzword

It doesn’t have to be like this, however. At Mansfield Building Society we are passionate about taking each case on its individual merits, empowering our underwriters to really get to grips with the factors involved so that they can make an informed and fair decision.

That approach also lays behind our decision to launch a simplified Versatility range, with the aim of making it easier for brokers and their clients to benefit from our products designed for those with more complex circumstances.

For example, our new Versatility range includes more accommodating criteria on areas such as employment length, continuous employment and zero hours contracts.

Viewing borrowers as individuals

Brokers know that as time goes on, fewer and fewer clients will fall within the ‘vanilla’ category. Whether it’s employment status, credit history or even the property type, there are significant numbers of potential borrowers who have some level of complexity involved in their mortgage hopes.

But it’s not good enough to write them off, to dismiss their home ownership aspirations simply because of a perceived complexity. If lenders do their due diligence, and really understand the key aspects of a case, then there can be no reason why a short period in a certain job or on a contract should be enough to preclude a client from accessing the funds they need.

It’s lenders who take a more versatile approach, and who can demonstrate a keenness to deliver rather than find reasons to turn down applications, who will win the support of brokers and borrowers alike.