Is contractor mortgage lending out of step with the self-employed?
It could be that as many as 1 in 8 self-employed people who have applied for a contractor mortgage, have been rejected. A rejection is never good news as it hinders the likelihood of future applications being approved, regardless of income levels and years of accounts available.
As more than 16% of the UK’s workforce is now self-employed, nearly 4.5 million people are possibly being underserved by the mainstream mortgage market.
While some mainstream banks are offering a more sympathetic approach to contractors, it would seem that others have not yet caught up and responded to the ONS’s latest figures by offering suitable mortgage ranges. The more traditional approach to lending clings to the view that income earned by the self-employed is less secure than that of the employed.
Not all lenders are the same, and not all lenders maintain an inflexible attitude when it comes to evaluating an application from someone who works for themselves. Finding the right lender, who approves loans by underwriting on a case by case basis, can be a challenge if you attempt the search alone.
Working with independent mortgage broker, Deal Direct, could not only match you with a lender who fully understands the way you work, but could significantly improve your chances of approval first time.
Don’t leave your contractor mortgage search to chance, and work with one of our professional mortgage advisers instead.
Contact Deal Direct on 0800 048 8828 for contractor mortgage advice.
