Speaking at a Mortgage Solutions debate in association with Accord Mortgages, Morrey (pictured) said the skills of the underwriter were “paramount” when it came to mortgage applications for the self-employed because lenders still needed to lend responsibly.
He said brokers also needed to fully understand their client’s situation, adding: “It’s not enough to say ‘send me two years of accounts’ then fire them off to an underwriter and go ‘tell me how much you’ll lend’.”
He said specialist underwriters in particular who managed more complex cases, such as applications coming from the self-employed, were “utterly vital”.
Morrey added: “They want to hear a story as to why they should lend that is then backed up with some facts.
“Lenders need to encourage underwriters to keep searching for those reasons why they should say ‘yes’, which may include contacting the accountants.
“Brokers need to fully understand where the clients are coming from and where they’re going to and make sure the lenders understand that as well, so the lenders can give a fair decision.”
Taking individual decisions
Jeremy Duncombe, director of mortgage distribution at Accord Mortgages, said some self-employed people thrived during economic uncertainty while others suffered, so the lender realised that they had to “take individual decisions based on every customer”.
He also said Accord was well positioned to continue to support self-employed mortgage borrowers and said it was important for lenders to continue to serve this part of the market.
Ed Checkley, managing director of Advias, said his firm handled many self-employed cases and there were a lot of complexities. He also noted lenders that specialised in this area were clear as they often went beyond the basic facts.
Watch the video [6:00] hosted by Victoria Hartley, contributing editor of Mortgage Solutions, featuring Jeremy Duncombe, director of mortgage distribution at Accord Mortgages, Nick Morrey, technical director at Coreco and Ed Checkley, managing director of Advias.
Sponsored content in association with Accord Mortgages. For Intermediary Use Only
