Trussle calls for self-employed mortgage processes to change

Michael Lloyd

May 15, 2019

Online mortgage broker Trussle is proposing suggestions to improve the self-employed mortgage process following research from their third Mortgage Saver Review.

The research found that nearly three quarters (71%) of the growing self-employed population believe their employment status makes it harder to get a mortgage.

The review also revealed that a third of self-employed borrowers found sourcing the additional documentation required to get onto the property ladder particularly challenging.

Ishaan Malhi, chief executive and founder of Trussle, said: “The self-employment sector is growing quickly, but the industry isn’t adapting fast enough.

“Every year, self-employed borrowers face an inconsistent, complicated and time consuming mortgage journey.

“From unsuitable mortgage products, to additional costs and a complicated application process – the self-employed are being let down.

“Home ownership should be accessible for everyone. We’re calling on the industry and the government to work more cohesively to make changes for the better.”

Two-fifths (38%) of the self-employed found the overall mortgage experience difficult to navigate due to poor guidance.

Trussle is proposing suggestions such as integrating Open Banking to help those with multiple income streams and assessing self-employed mortgage applicants on their current and not historic income to help with the processes.

Malhi continued: “At Trussle, we’re on a mission to fight for fairer mortgages. We’re using our data to help design new products for under-served groups, like the self-employed.

“Our ambition is to make home ownership accessible for everyone and this is a big step in that direction.”

The Mortgage Saver Review also found that a fifth of self-employed borrowers aged 25-34 are putting off children to help their self-employed mortgage application.

In addition, more than half (55%) of those self-employed borrowers who felt overlooked or penalised due to being pregnant believe they were treated differently during their mortgage application process.

This comes as recent figures reveal that the number of self-employed people in the UK is set to rise to 5.5 million by 2022.

Paula Higgins, chief executive of the HomeOwners Alliance, added: “The mortgage industry and government need to wake up to the world in 2019 and do more to support the self-employed into home-ownership.

“Many of the hurdles this group of people face are time-consuming, bureaucratic and unfair.

“The industry should treat all applicants fairly and deliver a top notch service to the self-employed sector which will continue to grow.”

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