Vida has reduced selected residential mortgage rates by up to 106 basis points and eased criteria for self-employed applicants, contractors and borrowers with commission income.

The specialist lender said the changes were designed to improve affordability and give brokers more flexibility when placing cases involving more complex income profiles.

For self-employed applicants, Vida has cut the minimum trading history requirement from two years to 12 months.

Where a borrower has been trading for between 12 and 24 months, brokers will no longer need to provide an accountant’s reference with a current year projection. Instead, Vida will accept three months of business bank statements and one month of personal bank statements.

The lender has also extended the acceptable age of latest year accounts from 18 months to 21 months, in a move likely to give brokers more scope when submitting applications.

Contractor criteria have also been relaxed, with the minimum time remaining on a contract reduced from three months to one month.

Vida has also changed the way it treats variable income in affordability calculations. It will now accept 100% of commission income, up from 75% previously.

Ross Williams, head of product at Vida, said: “We know people’s lives and incomes don’t always run in straight lines, and that’s exactly why we’re making these changes.

“By improving our criteria and passing on rate reductions to borrowers, we’re making it easier for brokers to place cases with confidence.

“We want brokers to feel they can come to us first with self employed customers, contractors or anyone with a more complex income — knowing we’ll look at the whole picture, find solutions, and give more customers a simple, positive route to a mortgage.”

Alongside the residential changes, Vida has also reduced selected buy-to-let product rates by up to 80 basis points.

It has also reintroduced higher fee options across its buy-to-let range, increasing product numbers and giving brokers more options when structuring applications.

For brokers, the residential changes are likely to be of particular interest in cases where mainstream lenders may be less flexible on newer self-employed borrowers, contractor income, or variable earnings.