The self-employed can find it harder to get a mortgage than those in employment because lenders don’t really understand their income streams or they are new to their self-employed career so don’t have much of a track record of earnings.
However, some lenders are becoming more sensitive to self-employed borrowers and their needs. Newcastle Intermediaries, which lends via mortgage brokers, this week launched an attractive two-year fixed-rate deal pegged at 2.2 per cent, on mortgages up to 60 per cent loan-to-value. There are no reservation or completion fees and a free standard valuation, further keeping initial costs down.
Another funding option for self-employed borrowers, of which we deal with a growing number, is extremely welcome, particularly as Newcastle will look at applications from those who have been trading for less than two years. Applying individual case assessments to these borrowers is a sensible move as one self-employed client is very different from another and one size does not fit all.