More mortgage misery for the self-employed
PUBLISHED: 13:00 11 October 2016
Self-employed borrowers still struggle to get mortgages, with one in eight being turned down.
Research shows that figure is the same for those looking to remortgage too.
Yet nearly half of self-employed customers say they are earning more, or the same, since working for themselves. And around 26 per cent said they were earning more in self-employment.
Up to 86 per cent of brokers want to see more mortgage choice for the self-employed.
The study, conducted on behalf of Nottingham Building Society, found that 12 per cent of self-employed borrowers were refused home loans.
The results highlight how difficult it can be for people who prefer to be ‘their own boss’ to get on the property ladder – despite 48 per cent generating the same income, or higher, than when they were in previous full-time employment.
Problems of proving income or affordability contributed to 12 per cent of those involved in the study being rejected for mortgages or remortgages.
Senior mortgage broking manager at Nottingham Mortgage Services, Ian Gibbons, said: “Self-employment is growing rapidly and being your own boss should not mean you cannot successfully apply for a mortgage.
“Our study shows self-employment can still be an issue when applying for a mortgage. Lenders are responding with new mortgage deals for self-employed customers being launched regularly, so there are options available on demand.
“The key to ensuring you do not struggle to be accepted is to get expert independent help and to explore the full range of options.”
The research revealed that it isn’t just mortgages either – with 14 per cent of those who recently became self-employed being turned down for credit cards and unsecured loans (10 per cent).
For more information about Nottingham Mortgage Services, call 0344 481 0013, visit a branch or go to www.thenottingham.com/mortgages.