Self-employed mortgage searches

We are a self-employed specialist and this is 99% of our work. Whenever there are changes in the market, we see a wave of people asking about them and wanting to know if they are still eligible being as their work is variable. The more experienced s/e person the less they worry, but anyone in their first 3-4 years have the biggest fears. With so much info on the internet, it all gets a bit much hearing horror stories etc. We like to make sure they go away happy and educated as to their actual chances and choices.

We see an upturn in Self Employed caseload every June/July - this is usually created by the standard April year end date. Applicants looking to buy or remortgage will start talking to their accountants and financial advisers about their plans and adjusting, where possible, their trading figures in preparation. 2023 has seen an alround increase in activity for us with clients now bored of all the doom and gloom taking a leap of faith.

There is no coincidence that it is 2 years since return-to-work protocols were untightened following the covid epidemic. This resulted in a dramatic increase in new start-ups and individuals leaving employed roles to go self-employed. Individuals who previously had no accounts or only a single year's evidence of income are now in a position to use self-employed income and are enquiring about mortgage affordability. It's a combination of this and thousands of mortgage deals coming off fixed rates.

Other than during the pandemic, the number of self-employed people has been growing consistently year-on-year and is currently around 14 million. That trend is likely to continue, as the cost of living incentivises many to leave employed roles and seek a higher standard of living and more flexible working arrangements by setting up their own business. The number of fixed-term contractors setting up limited companies is growing too, particularly in IT.

I think that an uptick in the number of people who have become self-employed is certainly one factor, but I also think that in these uncertain times, more and more people are seeking professional mortgage advice from brokers, rather than doing things themselves or just speaking to their normal bank - with access to hundreds of possible mortgage deals it makes total sense to instruct an expert to help you find the right one for you.

Post Covid, we have experienced a rise in the number of clients who are now self-employed, spurred on by remote working and the gig economy. This is particularly so in London and the South East and amongst those in their 40s and 50s. Perhaps they feel that, after 20 – 30 years of being employed, they now have the confidence, the financial stability and the know-how to go it alone and to be masters of their own destinies. Given that the numbers are rising, it would seem obvious that requests for self-employed mortgages are rising in line.

Take a broader view if you’re self-employed and need a mortgage. Don’t just go to your high street bank. Specialist lenders, building societies and private banks will be much more accommodating and will have some excellent, innovative lending products available for you beyond your bog standard mortgage. Go armed with evidence of your earnings, tax returns, bank statements, bonuses, details of any assets you hold and credit record.