With self-employment in the UK at its highest level since records began, new research from Ipswich Building Society shows that
- over three quarters (77%) of self-employed/freelance workers are concerned about not being able to shop around to arrange a mortgage
- 76% are worried about not being able to get a competitive mortgage
- nearly two thirds (63%) believe that mortgage providers expect them to jump through more hoops than employed people during the application process for a new loan
- four in ten of those who have (or intend to have) a mortgage in the future are worried they might have difficulty arranging finance because of their working status
- 61% of freelancers/self employed feel that banks and building societies do not understand their financial position
- 45% believe that mortgage providers do not want them as mortgage customers.
Ipswich Building Society coined the term Mortgage Misfits to describe those who find themselves overlooked by the main high street lenders on account of their status, including older borrowers, self-builders, those facing major life changes and the self-employed and contractors. Rather than adopting a ‘computer says no’ approach used by many lenders, the Society relies on manual underwriting to make sensible but fair lending decisions.
Paul Winter, Chief Executive of Ipswich Building Society, commented: “Too many credit-worthy borrowers with unusual circumstances are overlooked by mainstream mortgage lenders and our view is that ‘mortgage misfits’, including the self-employed, freelancers and contractors, should have the same level of choice and access to the mortgage market as any other group.”
In line with its approach of supporting Mortgage Misfits, Ipswich Building Society is today launching three new mortgage products to best suit different self-employed groups.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE