The self employed sector is responsible for two thirds of the 1.1m jobs created since the 2008 financial crash, according to the Office for National Statistics (ONS), but being a company director or sole trader places you at a significant disadvantage when it comes to home ownership. Most high street banks view being your own boss as rather flaky and instead prefer lending to who they regard as the rock solid security of full time employees. Many mainstream lenders use rigid automated systems to make their decisions which often means being a self employed company director or sole trader leads to instant rejection.
The financial crash did put more pressure on the self employed as schemes, such as self certification, which were designed to facilitate lending for the self employed were withdrawn due to fears they were being abused. Fortunately some lenders are now beginning to respond positively and have placed the welcome mat firmly out to those borrowers who are their own boss.
It could be a long, painful and costly journey trying to find a lender on the high street that will be able to meet the specific circumstances of a borrower who runs their own business.
As mortgage advisers we'll research the market to find the right lender and in many cases have direct access to underwriters to help minimise the chances of making an application to a lender that is unlikely to be able to help. We search beyond the big high street players where appropriate. Some smaller lenders can offer a more bespoke approach to a case rather than being as heavily reliant on credit scoring.
A small number of specialist lenders are keen to support borrowers in this much under served market. They offer a more individual approach using experienced underwriters to make decisions, not just an automated system. Most of the specialist lenders only take on new business via authorised financial intermediaries, so it's imperative you contact us today an we'll help you get the mortgage you need.