Pepper Money has introduced enhanced lending criteria for self-employed second charge mortgage customers.

The lender says it is looking to level the playing field with its changes, as 80% of self-employed people say that self-employment makes it more difficult for them to secure a mortgage.

Now, self-employed customers now have access to the same rates as employed borrowers up to 95% LTV.

In addition, self-employed applicants can use their latest year’s income for affordability calculations across all products.

For Pepper Money’s Prime and XLTV ranges, the lender will request two years’ proof of income and on its Plus range it will request just one year.

Ryan McGrath (pictured), second charge sales director at Pepper Money, said: “Pepper Money has established a strong reputation in providing lending opportunities that level the playing field for the self-employed, and these improvements will help to enhance that reputation.

“When it comes to second charge mortgages, we have recognised some of the challenges faced by self-employed customers and improved our criteria to address those challenges head-on. As market leaders in the second charge space, we understand that you can never rest on your laurels and these are just the latest in a full programme of ongoing enhancements to our proposition to ensure that we are best placed to help even more customers.”