There has been a rapid rise in self-employment over recent years, in fact the number of self-employed workers has increased from 3.3 million in 2001 to 4.8 million in 2017, according to the Office for National Statistics. This sector now account for a substantial 15% of the British workforce.
However, amongst those who are self-employed, there is a common belief that being your own boss can hinder your chances of getting a mortgage.
According to research by Aldermore, almost a third of self-employed homeowners believe the mortgage process is biased against them.
If you are self-employed, you may find yourself asking the following questions:
- Does the way I receive my earnings mean I can’t get a mortgage?
- Will lenders treat me differently?
Oviso will be able to help answer all of your questions, but first let’s start by quashing a common myth…
Self-employed mortgages do not have their own mortgage category
If you’re self-employed, you will be able to access the same products and rates as everyone else providing you meet the correct criteria. Great! But the problem is that your earnings are more complex and you must be able to prove them.
Ultimately, when applying for a mortgage, you will be assessed on how much you are earning, how likely is it you will sustain that level of earnings, how you take your earnings, how long you’ve been trading for, your accounts history and a number of other things. Then the lender will make a judgement – so you can appreciate how complicated and slow the application process can be.
Should I use a broker?
Overall completing an application can be a lengthy, complicated and time-consuming process, which is why it’s important to seek advice. Because calculating income and eligibility for self-employed workers has so many variables, it’s also important you ensure you apply with a lender that most favourably views your circumstances.
So, whether you have many years’ experience of being your own boss or just a short amount of time – seeking professional advice through Oviso can make the whole process easier and more beneficial. Oviso’s experts will assess your current financial situation and help you search the marketplace – including major banks and building societies, to find a mortgage that’s right for you.
Oviso’s support doesn’t end here. We help you every step of the way, leaving you to focus on running your business.