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‘As a self-employed broker even I am unable to get a mortgage’ – Star Letter 07/02/2020

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  • 07/02/2020
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Each week, Mortgage Solutions and its sister title Specialist Lending Solutions runs a Star Letter feature, in which we collate the top comments posted under our articles.

 

One article which garnered several comments this week was: Bad credit borrowers more likely to get a mortgage than the self-employed 

The first response came from Robert Drury, who was sympathetic to self-employed borrowers who experience difficulties when looking for a mortgage. 

He said: “This is very interesting. I have a client who has been self-employed for 18 months and is doing fantastically well in his line of business already as he came from the same line of work as an employee.

“When we spoke at the end of last year and I explained the frustrations I was experiencing in getting him a mortgage he made a very valid point.   

“The previous week Thomas Cook had gone into administration and very sadly, many people lost their jobs – however a month previously with pay slips in hand they would have been able to apply for a mortgage – and my client’s take on this was ‘where is the fairness in all of this?’.   

“Secondly, I went self-employed 14 months ago, so ironically, I am unable to get myself a mortgage even with 19 years’ experience as a mortgage adviser, 32 years in the financial world and an excellent credit file.” 

 

Employment status not an issue 

Alykas236 seemed to take a different view, adding: “More than 50 per cent of my applications will have at least one self-employed client.

“In my 15 years in the industry, I have never had an issue because they are self-employed. The only issue is where they have insufficient income.   

“Many lenders will lend with one year’s accounts and there are plenty of lenders who will take a flexible view where a client has gone from employed to self-employed in the same line of work.

“I guess this highlights that all advisers are not created equal.” 

 

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