Trussle: Self-employed have to jump through ‘extra hoops’ to get onto property ladder

Jake Carter

January 14, 2021

Miles Robinson - Trussle

The self-employed have to jump through extra hoops to get onto the property ladder, according to Miles Robinson (pictured), head of mortgages at Trussle.

Robinson said: “Recently we’ve seen some lenders tighten their criteria for self-employed applicants.”

Robinson pointed out that some lenders have tightened their criteria for self-employed applicants, with Santander limiting its mortgage products to 60% LTV for the self-employed.

As a result, based on the average house price in the UK, a self-employed mortgage applicant would have to provide £98,000 in the form of a deposit.

Robinson said: “Self-employed people have always had to jump through extra hoops to get onto the property ladder to prove they’re not a risk to mortgage lenders.

“Those in permanent employment usually have their income assessed on their latest three months’ payslips.”

As an example, Robinson outlined that for the self-employed, it is typically two or more years’ of accounts and income, bank statements, proof of address and identification.

He said: “Add to this the impact of the coronavirus pandemic, and lenders are scrutinising applications in more detail than ever.

“In the current climate, there’s no doubt that the market is challenging for the self-employed and it is crucial that the government and the industry supports this group as they embark on their home ownership journey.”

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