Your Business and Industry

Is the outlook improving for self employed borrowers?

The residential sector is becoming increasingly complex for many types of potential borrowers.

There are growing numbers of self employed people who need additional support in servicing their mortgage requirements.

In addition, more and more people are having portfolio careers, often creating a mix of employment, freelancing, and/or consultancy work - therefore generating multiple streams of income. All of which are challenging scenarios for the more traditional lenders.

Despite the gradual reopening of businesses as lockdown eases and more lenders pushing up the loan to value curve, Mortgage brokers report that self-employed borrowers are still being viewed as risky business. This is according to the latest Mortgage Solutions poll where 61 per cent of brokers said the mortgage outlook was not improving for homeowners who worked for themselves, while 22 per cent said they thought it was.

Many lenders are reviewing their policy and criteria when it comes to meeting these demands, although the choice of lender can make a significant difference to the availability and amount a self employed mortgage applicant can borrow.

This factor underlines just how vital it is for intermediaries to fully understand we can meet the ever-changing needs of your clients in these challenging times.

For example, we accept retained profits and one year's accounts for the self employed. Here are 3 key reasons that we should be your first port of call for complex self employed cases:

  • Solutions designed specifically for clients with complex and multiple employment – from recently self-employed, directors, partners and contractors, to PAYE full and part time
  • Maximise borrowing with 100% of more types of income considered – including high commission and bonuses, trust, investment and pension incomes, share of net profits, retained profits, and salary dividends
  • We underwrite to your client’s individual circumstances and telephone support for brokers directly from the case underwriter.

So, if you would like to know more about our residential offering, then why not get in touch.

Speak to your BDM


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