The latest findings by the Office of National Statistics have indicated a rise in the number of workers in self-employment, from 12% of the labour force in 2001 (3.3 million people), to 15% in 2017 (4.8 million people). Traditionally, the self-employed market has been heavily populated with men aged 50 and over, working in specific industries such as construction and agriculture. Findings from the CIPD stated that the main cause of this recent growth is a growing amount of women and part-time workers making the switch to self-employment.
When seeking a mortgage, self-employed workers usually find themselves unfairly rejected by mainstream lenders, who require an excessive minimum trading period and higher average income when compared to those in regular employment. This may cause mortgage seekers to settle for the first lender that will accept them, even if they offer undesirable rates. However there are alternatives to accommodate this trend, as Additional Resources has access to a panel of over 100 lenders, many of which with products specifically for self-employed and accepting as little as one year’s trading history.
One of our many lenders recently revealed that they have helped over 4000 self-employed borrowers secure a mortgage in the last 3 years alone. This was achieved by evaluating each case individually and accepting applicants with one year’s trading history. Our vast panel includes even more lenders that will consider applications from self-employed workers seeing a decline in profit, with a history of adverse credit and no credit score.
If you’re self-employed and seeking a mortgage, whether it’s for a Residential, Buy-to-Let or Commercial property, contact Additional Resources (Sourcing and Funding) or complete an enquiry form and one of our specialist advisers will help you achieve your property ambitions.