According to a survey carried out by IPSE, 45% of self-employed workers think that mortgage providers don’t want them as customers. In addition, 61% think mortgage advisors do not understand their financial situation.
Chris Bryce, Chief Executive of IPSE has said: “
“Getting a mortgage is a major concern for the self-employed, despite 4.5 million people choosing to work independently in the UK. The whole culture around mortgage lending to the self-employed needs to be changed to accommodate the modern way of working.”
He went on to make reference to the newly formed Conservative government: “
“The Conservative Party made a commitment to review mortgages for the self-employed in its business manifesto and we look forward to working with the new Government on this important area.”
It will certainly be interesting to see how the new Government acts in relation to lending for contractors, freelancers and the self-employed.
Paul Winter, Chief Executive of the Ipswich Building Society, supports lending for contractors and freelancers. He stated that:
“Too many credit-worthy borrowers with unusual circumstances are overlooked by mainstream mortgage lenders and our view is that ‘mortgage misfits’, including the self-employed, freelancers and contractors, should have the same level of choice and access to the mortgage market as any other group.”
Key Findings
- 45% of self-employed workers think mortgage providers do not want them as customers.
- 61% believe that they do not understand their financial situation.
- 38% of those who are interested in getting a mortgage are concerned that they wont get one because they work independently.
- 61% think that supplying the documentation required for a mortgage is more difficult if you work for yourself.
The results do suggest that there is a certain stigma attached to self-employed workers when it comes to applying for a mortgage. This is an area that certainly needs to be addressed by the new Conservative government in order to keep a substantial sector of the labour force happy.
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