To outline this, recent data from mortgage broker Haysto suggested that one in six (17%) self-employed mortgage applicants have said they were declined for a mortgage because they run their own business. It also found that a further 15% of sole traders, and 14% of directors of limited companies, said they were turned down because of their job role and that despite record levels of mortgage applications, the number of rejections is also on the rise.
Concerns were also raised in the latest MBT Affordability Index for February, with data showing that the number of cases where at least one lender is available to meet the loan requirements of self-employment mortgage applicants fell in February.
The message emerging from this combination of data is that the choice of lender can make a big difference to the availability and amount a self-employed mortgage applicant can borrow. And where the borrowing needs of the self-employed - and those with complex income streams - are often too complex for mainstream lenders, it’s vital that brokers are aware of how lenders such as Foundation Home Loans can meet the ever-changing needs of their clients in these challenging times. For example, we accept retained profits and one year's accounts for the self-employed and for the employed, we only require people to have been in employment for a minimum of three months.
From regular communications with our intermediary partners, we realise that demand is growing for specialist residential solutions for self-employed clients and this demand will only continue to rise. So, if you would like to know more about our self-employed product offering, then why not contact us.
FOR INTERMEDIARIES ONLY