By Roger Baird on Wednesday 15 May 2019
Britain’s 4.9 million self-employed workers say they find it harder to get mortgage approvals.
Almost three-quarters of Britain’s self-employed workers say their business arrangements make it harder to get a mortgage, a report said.
Seventy-one per cent of these workers complain of having to “jump through extra hoops to get onto the property ladder”, according to research from online mortgage broker Trussle, which publishes its Mortgage Saver Review today.
The country’s 4.9 million self-employed breadwinners say they often have to provide up to three years tax receipts and years of unbroken employment before securing a mortgage.
The UK’s self-employed is set to grow to 5.5 million by 2022, swelled by the uplift in gig economy jobs such as bike riders for food delivery service Deliveroo, or taxi drivers for Uber.
The report also found that over half (55 per cent) of pregnant self-employed borrowers “felt penalised” by lenders who asked for proof concerning when their maternity leave ends, compared to employed workers who usually merely have to give mortgage brokers verbal confirmation.
Paula Higgins, chief executive of lobby group HomeOwners Alliance, said: “The mortgage industry and government need to wake up to the world in 2019 and do more to support the self-employed into homeownership. Gone are the days for many where you have a job for life with one company. Many of the hurdles this group of people face are time-consuming, bureaucratic and unfair.”
Trussle founder and chief executive Ishaan Malhi added: “Home ownership should be accessible for everyone. We’re calling on the industry and the government to work more cohesively to make changes for the better.”
Trussle comissioned research agency Atomik, who interviewed 2,002 nationally representative UK self-employed homeowners and those looking to buy in March 2019.