According to Aldermore’s latest First Time Buyer Index, four out of 10 first-time buyers gave up being self-employed to ensure they could secure their mortgage repayments. Nearly one in five prospective buyers (19%) who have been rejected for a mortgage were declined due to being self-employed, having irregular income or being a contract worker.
However, despite the struggles, self-employed first-time buyers are happy to have made it onto the housing ladder: 88% are happy to no longer be spending money on rent
Jon Cooper, director of mortgages at Aldermore, comments: “The homebuying process is difficult enough but even more so for those who don’t fit the standard profiles of some high street lenders. For those who are self-employed, contract workers or those with irregular income, getting a foot on the property ladder often comes with more hurdles and setbacks, which can be disheartening.
“It’s concerning many first time buyers are giving up being self-employed in order to get on the property ladder. Entrepreneurship is key to our economy, and we shouldn’t penalise borrowers on this basis. It’s a positive that over recent years, we’ve seen more lenders willing to be more flexible.
"At Aldermore, our human underwriting approach allows us to dig into the detail of a borrower’s finances to better understand their financial situation and help them realise their homebuying dreams.”
