Study highlights self-employed’s concerns over mortgage approval

June 14, 2015 by Brendan O'Neill

Mortgage Advisors

New research reveals that around a third of those who are self-employed in the UK worry about obtaining a mortgage when they are looking to purchase a house.

The study, conducted by the Association of Independent Professionals and the Self-Employed (IPSE), also revealed that over 60% of those who owned microbusinesses feel that being self-employed gives them an increased number of hoops to get through in supplying financial information, particularly if they are new to freelancing.

Following this research, IPSE is making calls for a governmental review into how lending to self-employed professionals is processed and approved. IPSE’s chief executive Chris Bryce 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.”

IPSE has since released some top tips to support those who are self-employed and are seeking a mortgage. The most important one is the maintaining of financial records in order to prove income, whether through company accounts or paid invoices.

Documenting is suggested for the renewal of contracts, work in the pipeline for completion, or proof of savings that would sufficiently maintain the mortgage payments for a few months.

Working as a mortgage professional who has qualified after passing the exam following CeMAP training, you will be best placed to support and advise your self-employed customers on their mortgage journey.