85% of self-employed incomes still below pre-pandemic levels

Essex Home Finance
85% of self-employed people in the UK say their income hasn’t yet bounced back to pre-pandemic levels.
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85% of self-employed people in the UK say their income hasn’t yet bounced back to pre-pandemic levels, resulting in more abandoning their dreams of moving onto or the up the property ladder, according to a survey by The Mortgage Lender.

The survey revealed 28% of self-employed people have seen their income slashed by more than half over the last year because of the pandemic. A further 16% said they had suffered income losses of between a quarter and 50%.

Consequently, 51% believe it is now more difficult for a self-employed borrower to get a mortgage and 53% claim that their self-employed status has deterred them from even applying for one.https://2ddaaabb0c71b7d1cb7cad9faffcfccc.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Steve Griffiths, sales and product director at The Mortgage Lender, said: “When we launched our new residential range earlier in the year we did so with the self-employed, complex income borrowers and credit impairment front of mind, because these are the people who have been most affected by the pandemic.

“Even before the pandemic self-employed people felt let down by the mortgage market. In 2018, as part of a special report called ‘The Self-Employed Economy’ we found that 1m (21%) self-employed people had reconsidered their employment situation because of the uncertainty of securing a mortgage. Today, the statistics show even more pessimism, with over half believing their chances of being given a mortgage are so slim they don’t even think it’s worth applying.

“Now more than ever specialist lenders need to have criteria that caters for a wide range of customer circumstances and recognise that the last 12 months has been financially difficult for many people.”

Original Article from Financial Reporter 02/08/21

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Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

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