Some 40% of self-employed individuals believe lenders must be more understanding when dealing with those with complex incomes.
This is according to research from The Mortgage Lender (TML) which also found that 38% of the self-employed think that having more specialist lenders in the market would make the mortgage application process easier for their cohort.
TML asked more than 1,000 self-employed individuals what would make the mortgage application process easier for them.
According to the survey, 34% said having to provide evidence of income for less time, so 1-2 years’ worth of accounts rather than two-three years, would make it easier, while 27% said a more streamlined approach to providing documents and evidence would help them.
And 30% said greater government support would make the mortgage application process easier, and 24% said bringing back ‘self-certification’ mortgages or a similar type of mortgage would help. There is clearly a need for more readily available information on the topic, with 20% stating this would be of help.
TML insists each of these asks are understandable when looking at what self-employed individuals find to be the most difficult parts of the mortgage application process.
Of those surveyed, 28% said understanding the process of a mortgage application was the most difficult part, while 25% said finding a lender that would lend to them was the most challenging. Another 18% said finding a broker that understood their circumstances was the trickiest.
Improving finances and getting all the necessary documentation in order also came up as a barrier for those self-employed. While 23% said improving their credit score was the most difficult.
With concerns over affordability and the cost of living, nearly half (46%) raised saving for a deposit as being the most challenging part of obtaining a mortgage.
TML head of key accounts Chris Kirby comments: “Self-employed individuals have typically faced greater challenges when it comes to obtaining a mortgage compared to those who are employed.. But with 4.31 million people who are self-employed in the UK sitting in this group, it’s no wonder that they want to see more specialism and understanding in the market to support their property goals”.
