A survey by the ONS found that self-employed individuals made up fourteen per cent of the work force, with temporary/free-lance workers making up an additional six per cent. Despite some of these self-employed and temp workers being professionals, some may be finding it more difficult to get offered a mortgage than those employed by a company.
This is in part due to new practices and rules which mean many lenders require in-depth income records; and require information going back at least 2-3 years. Moreover, this creates an issue for those just starting out on the self-employment path, as some start-up businesses have fluctuating incomes overs the first few years. In some cases company directors can also take a smaller salary to help boost company profits.
While many lenders are willing to accept applications for mortgages for self-employed people, some remain cautious when offering a loan. This means some self-employed people have taken on the advice of mortgage brokers to help them find the better deals.
