The increase in taxes for the self-employed announced in today’s Budget will mean even more struggles for those looking to purchases a home, Nigel Payne, managing director of TFC Homeloans, has warned.
The Budget saw plans laid out to increase class 4 NICs from 2% to 10% in 2018, with a further 1% increase in 2019. Additionally dividend allowances are reduced from £5,000 in 2017 to £2,000 from 2018.
Payne said: “The hiking of taxes for the self-employed announced in today’s Budget will leave them with less money in their pockets.
“We already know that the self-employed are not adequately served by the mainstream mortgage market, facing challenges in verifying their income and proving affordability.
“The measures announced today could exacerbate these challenges, and make it even more important that self-employed borrowers can access specialist mortgage funding as they become increasingly distanced from high street lenders.
“Quality packagers, such as TFC, understand the pressures faced by the self-employed, their variable and often complex income streams, and can help your clients gain access to mortgages from lenders that support those who work for themselves.”