With around five million self-employed people in the United Kingdom, this is a sizable market. Companies who may have previously dismissed the self-employed market may now find this is a market that has a lot to offer to them.
It is likely the self-employed market will increase in the future. Therefore, there will come a point when the volume of people becomes too big to ignore, and there will be a lot more options available for these professionals. This is the case for credit, and some mortgage lenders may find self-employed people to be a better option to lend money to than first-time buyers.
Self-employed people can step onto the property ladder
A UK specialist mortgage lender has considered the finances and spending habits of successful mortgage applicants. The findings indicate self-employed people are more conservative with their finances than people who buy a home for the first-time.
The study also suggests self-employed people could have borrowed more money than they did. The analysis of mortgage approvals indicate self-employed applicants could have received a mortgage 29% larger than the one they received. In comparison, first-time buyers could have borrowed 19% more.
There is no doubt uncertainty in the British economy affects people, but there are opportunities for some. The slow growth in house prices has led many people to step on to the property ladder. It is good that more people feel confident about their mortgage applications, and there is no denying self-employed people need all the assistance they can get.
Self-employed people feel discriminated against when applying for a mortgage
Unsurprisingly, many self-employed people feel discriminated against when it comes to arranging a mortgage. A lot of people who work in this sector believe they need to work smarter and harder to prove their affordability to a lender. This can put many people off the process, but this would be a mistake.
In many ways, it is easy to see why a self-employed person is in a strong position to apply for a mortgage. There is a need for these people to be on top of their finances, and to maintain financial records. These aspects should help when it comes to applying for a mortgage, and the discipline of self-employment helps develop financial skills and sensibilities.
Many first-time buyers find they need to overhaul their mindset and approach to money. A lot of people and households achieve this, but equally, many struggle. There is also considerable help on offer to first-time buyers, which makes the process more straightforward for these households.
The important thing for all households to remember is that there are mortgage options available for everyone. Some households may have fewer options than others, but with specialist lenders, there is tailored support. As stated above, the number of self-employed people in the country is on the rise.
Therefore, it is likely lenders will re-evaluate their offerings, and more solutions will be made available to self-employed people looking to buy a home. If you’re in this position and wish to step on the property ladder, make sure your finances are in order, and search for lenders willing to support you.