You could argue that the pandemic has made it harder for Britons to achieve their property dreams in 2022. In fact, 28% of respondents agreed with this statement.
The UK study* found that more than half of the self-employed believe their chances of buying or renovating a property (whether for themselves or for investment purposes) may be out of reach this year simply because they expected to be denied a mortgage.
Michelle Walsh, Specialized Account Manager at Together, says:
“Around 15% of workers in the UK are self-employed these days and more and more people are choosing to supplement their nine to five with additional sources of income – such as rental properties and side businesses.
It is clear that a stable job for life is no longer necessarily what the British aspire to. A third of respondents to our survey said they had always had ambitions to be self-employed, and almost two-thirds revealed that they had made the decision to achieve greater flexibility and a better work-life balance. personal life.
While 80% agreed that going into self-employment had a positive impact on their mental health and well-being, many admitted that it had a negative impact on their ability to access finance – from the less they think.
Nearly a third of freelancers had never even heard of a specialist lender
The majority of survey respondents who thought their mortgage application could be turned down said it was because they were self-employed (55%) or had irregular income (35%). And yet, 84% would have needed to borrow money to realize their real estate ambitions, which at first glance seems like a stumbling block.
Our self-employed population often finds it harder than employees to get a mortgage. They don’t have an employer to vouch for them, and proving their income and financial ability to some traditional lenders can be tricky, especially if they haven’t been self-employed for more than two years (this which represented 29% of respondents to our survey). .
In fact, a recent survey on a popular brokerage forum found that mortgage applications from borrowers and independent contractors were often the hardest to place.
Specialist lenders have been instrumental in supporting these clients on their journey to home ownership
But these clients may end their real estate dreams too quickly simply because they don’t know where to look. Our survey indicated that almost a third of self-employed people had never even heard of a specialist lender who could be flexible when it came to assessing their income and understanding their situation.
As one of the UK’s leading specialist lenders, we have extensive experience supporting our channel partners in the most complex cases, with dedicated teams who will work closely with you to find the right one. solution for your independent clients.
Whether your client is an individual entrepreneur (with only 12 months of business history), a limited company director receiving a base salary plus dividends, or has a business still recovering from lockdown, we will make a good decision. sense that works for their individual circumstances and goals. Even if they had CCJs or defaults, or they were refused elsewhere, we could still work out the solution together.
Even if customers had CCJs or defaults, or they were refused elsewhere, we still could find the solution together
Michael Craig, Director of Sales at Brilliant Solutions, adds:
“Clients who are self-employed, operating as contractors, freelancers, or on a zero-hours basis, often lack confidence in their ability to secure a mortgage.
This perception that they will be automatically excluded because of their professional status might have increased during the pandemic if their situation had changed; perhaps they have seen their incomes rise and fall or have taken on additional debt that could make it difficult to buy a property or remortgage it.
At Brilliant Solutions, we’ve seen a huge increase in the number of freelance clients seeking support due to concerns about the impact on their revenue. These clients often do not have the same knowledge or understanding of the specialty lending market as brokers, and so it is the intermediaries who hold the key to furthering their real estate dreams.
These clients may end their real estate dreams too soon simply because they don’t know where to look.
Specialty lenders have played a key role in supporting these clients on their journey to home ownership. As a Gold Partner of Together, we work closely with its dedicated sales and underwriting teams to help brokers place their difficult cases and keep the application process smooth.
Michelle Walsh concludes:
“Your clients don’t have to compromise between working and living the lifestyle they love and achieving their real estate ambitions. Together, we can get your self-employed clients moving.
For professional intermediate use only.
* Survey of 1,000 UK freelancers conducted by OnePoll in December 2021 on behalf of Together.