Thursday, May 30, 2024

Yes – You Can Get a Mortgage if You Are Self-Employed

Self-employed workers have
traditionally encountered difficulties in successfully applying for financial
products and services. Mortgages in particular have been considered something
of a ‘no go’ area for the self-employed, motivating many to abstain from
applying altogether.

However, evidence suggests that mortgage lenders in the UK are not nearly as hesitant to work with
the self-employed as previously thought. 

As long as those concerned can
comfortably afford the repayments and are in a strong financial position, they
have just as much chance qualifying for a competitive mortgage deal as
conventionally employed applicants.

Growing Demand, Relaxed Restrictions

According to recent figures released
by the Office for National Statistics (ONS), the UK was home to more than 5
million self-employed workers at the end of last year. This equates to
approximately 15% of the entire employed population and represents a huge spike
from the 3.2 million self-employed workers recorded 20 years earlier.

Commenting on the shifting trends in
the United Kingdom, Hodge Bank business development director, Emma Graham, told
Yahoo Finance that self-employed status is no longer the big obstacle it used
to be.

“I don’t think it [being
self-employed] makes a big difference these days, it is just as easy to get a
mortgage if you’re self-employed than if you were employed,” she said.

“Going back a generation ago it was
quite tricky, some of the requirements were quite onerous, but self-employment
is ever-growing and more popular,”

“The challenges can come if you are
newly self-employed and have a limited history of your accounts, but an adviser
will know exactly where you should go to get the best deal.”

Adjusting to the New Norm

The after-effects of the COVID-19
crisis are likely to be with us for some time, including home working becoming
the ‘new norm’ for businesses. In addition, experts believe that the upward
trend in self-employment and the pursuit of self-employment opportunities will
only continue to accelerate over the coming years.

Traditionally, it has been assumed
that self-employed status immediately raises a ‘red flag’ with lenders. In
reality, qualifying for a mortgage as a self-employed worker is no more
difficult than any ‘conventional’ case.

You simply need to ensure your
finances are in order, get your accounts signed off by a certified accountant
and produce enough evidence to support your application. In addition, broker
support is considered essential for anyone looking to apply for a mortgage as a self-employed worker.

Across all age groups, the number of
self-employed workers qualifying for mortgages is growing at record pace. In
some instances, self-employed applicants with quantifiable long-term job
security are actually being offered more than their conventionally
employed counterparts.

Lenders are increasingly acknowledging
the fact that self-employed doesn’t inherently mean ‘high-risk’. In a climate
such as today’s, it can actually mean the exact opposite.

For more information on any of the
above or to discuss self-employed mortgage applications in more detail, contact
a member of the team at
UK Property Finance today.

Craig Upton
Craig Upton
Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Company and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, Development Finance , Serimax and also supported UK doctors, solicitors and property developers, gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.

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