When will we see an increase in self-employed mortgage products?

The self-employed mortgage market continues to be limited, despite a rising number of self-employed workers.

Following the most recent report from the Office of National Statistics, just over 15% of all working people are now self-employed. In the first part of this year alone, 300,000 more of you started working for yourselves. There is now an approximate 85/15% split between employed and self-employed, but mortgage lenders are not keeping pace with this trend.

More and more products are being launched, but many mortgage lenders are simply not familiar with contract work. Generally speaking, more paperwork is still required from a self-employed person to demonstrate their sound financial history. The lower the risk for the lender, the better.

However, when comparing the need to provide up to 3 years’ history for your mortgage application, against that of an employed worker, who may only be asked for 3 pay slips and their most recent P60, clearly there’s a big difference in the requirements for assessing risk.

Finding the right deal for you and your circumstances can be really hard work, which is why mortgage applicants are advised not to try and do this all by themselves.

Deal Direct have many years’ experience in sourcing contractor mortgage deals. We know which lenders specialise in these types of mortgages, and which have the skilled underwriters and the risk management processes in situ, to secure a good outcome for both lender and borrower.

The relationships we have built with these specialist lenders means that we are the contractor mortgage broker of choice.

To discuss your self-employed mortgage requirements in more detail, call Deal Direct.

Speak to us on 0800 048 8828 today.