21 February 2017
Research carried out by Aldermore, in association with YouGov, shows one in seven British workers (15%) aim to become self-employed at some point in the future, with 12% of these hoping to make the transition in the next 6 months.
The research gives an insight into the motivations of those wanting to become self-employed and compares this with the reality of actually being self-employed. For example, just one third of aspiring entrepreneurs (32%) are concerned about having an irregular source of income, whereas this is the biggest issue for those that already work for themselves with over half (55%) admitting this is a downside of self-employment.
There is also some food for thought for the mortgage industry; with almost a third (30%) of self-employed home owners believing the mortgage application process was biased against them, while almost two thirds (63%) of those who have experienced difficulty securing a mortgage said it was because it was difficult to find a provider who understands individual business owners. This shows how important it is for lenders to understand self-employed applicants and look at the whole picture, by taking their business and personal circumstances into account.
For those who have self-employed clients, the good news is Aldermore is a lender that understands business owners and underwrites every case individually using a common sense approach. They’ve also recently changed their lending criteria and now consider 1 year’s accounts for residential mortgages up to 85% LTV.