It has always been more difficult for self-employed people to get a mortgage compared to salaried employees. For that matter second charge loans have historically been somewhat harder to obtain for the self-employed as well.
At the heart of the issue is a tendency among self-employed individuals to not be able to satisfy loan companies looking to placate their own fears that the borrower will not be able to make good on his or her loan.
The good news is that things are changing – at least where second charge loans are concerned. This is particularly welcome news especially in these hard times we are currently living in. First Brexit and now Covid19!
Lenders are changing the way they do business in order to better serve self-employed applicants. For example, one specialist lender indicated that it had reduced its tax calculation requirements while others are changing their income criteria to make it easier for borrowers to document their income.
Second charge lenders can do a lot more to help the self-employed than primary mortgage lenders because they have much more flexibility. They are finally taking advantage of that flexibility to find ways to better serve self-employed borrowers.
Even more encouraging is the fact that lenders are coming up with a lot more specialised product to suit the majority of needs.
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