Almost three quarters of self-employed borrowers believe it’s harder to get a mortgage due to their employment status, according to research from Trussle.
Meanwhile, 33% of self-employed borrowers surveyed found it difficult to gather the information required to get their application approved, particularly when it came to proving their employment history, earnings and taxes.
38% said they found the entire mortgage experience hard to navigate due to a lack of guidance from lenders and little clarity over the type of documents required.
In addition, pregnant borrowers felt penalised too, with many believing they’d been unfairly treated during the mortgage application process. A fifth of this group felt the lender unreasonably asked for proof about when their maternity leave ends and an additional fifth felt penalised for not returning to work full time once their leave was over.
In contrast, those in permanent employment simply had to verbally confirm to the lender that they’d return to work on the same terms as before, without providing any proof.
18% of self employed borrowers aged 25 to 34 said they felt discouraged from having children due to concerns that this would harm their application.
As a result of the findings, Trussle is calling for the industry to make it easier for self employed workers to access the funding needed to get on the property ladder.
CEO of HomeOwners Alliance, Paula Higgins, commented: “The mortgage industry and government need to wake up to the world in 2019 and do more to support the self-employed into homeownership. Gone are the days for many where you have a job for life with one company. Many of the hurdles this group of people face are time-consuming, bureaucratic and unfair. The industry should treat all applicants fairly and deliver a top notch service to the self-employed sector which will continue to grow.”
One way that self employers borrowers can do to decrease their chances of mortgage rejection is to seek the help of an experienced mortgage broker. A mortgage broker will assess the borrower’s financial situation in great detail before assessing which lenders are most likely to offer them the loan required. To find out how TaylorMade can help you increase your chances of getting a mortgage, please get in touch with our team today.
