Britain has seen a large increase in the number of self-employed workers in recent years but there is a belief from some that the mortgage system is biased against them. Our product Development Manager, Nathan Reilly, takes a look at whether the mortgage market is making the most out of Britain’s own bosses.
Demand for specialist residential mortgages is being driven by a diverse set of customer needs, particularly from the self-employed. According to Paragon’s Q4 2017 Financial Adviser Confidence Tracking (FACT) Index report, based on interviews with 198 mortgage intermediaries, 21% of specialist lending is for the self-employed.
But amongst Britain’s own bosses there is a common belief that because they’re self-employed they will struggle to get a mortgage. A staggering 30% of self-employed homeowners believe the mortgage process is biased against them, according to research by Aldermore. It only takes a quick google search to see the number of articles, blogs and questions from the self-employed asking if they can get a mortgage!
So, is the mortgage market making the most of Britain’s own bosses?
The size of the self-employed work force alone suggests there is huge potential in the market. They now account for a substantial 15% of British workers having risen from 3.3 million in 2001 to 4.8 million in 2017, according to the Office for National Statistics.
For intermediaries this presents a huge opportunity. It’s important to ask yourself whether you are keeping in touch with these potential customers and regularly reviewing how lenders are adapting their criteria and products to meet their needs. For instance, do you know which lenders take one year’s accounts? How different lenders treat different types of income? Which lenders are best for sole traders, contractors and partner or company directors?
To fully tap into the self-employed market, we need to get the self-employed talking about mortgages and start debunking the myth that they’re unable to get them. Why not make use of the promotional materials available on Broker Zone? Simply log in and order your self-employed posters, flyers and digital images to help you make the most of Britain’s own bosses.
Here at MI we aim to provide the highest level of service for our members which is why our Broker Support Team are also always on hand to take your call and help place your cases. Put them to the test and let them help with your tricky self-employed clients!