Self-Employed Facing Challenges In Arranging A Mortgage
In a challenging year for people looking to arrange a mortgage, some people have a more laborious task than others. While remote working is likely to become a more common feature of everyday life for many people, for an existing part of the working demographic, this has been the backbone of their working day for some time.
Self-employed professionals are no strangers to working from home, and they are also no strangers to finding it hard to arrange a mortgage. Many lenders have shied away from offering mortgage products to self-employed professionals, citing concern about whether they will remain financially able to pay their mortgage each month.
Given this was the attitude of many lenders before the COVID-19A pandemic, it is fair to say many self-employed professionals are not too optimistic about their chances of arranging a mortgage anytime soon. However, while leading lenders are not offering much support for this demographic, there is hope from one organisation.
Help is available for self-employed professionals
The Beverley Building Society is offering a deal which is specifically aimed at self-employed professionals who have been negatively impacted by the COVID-19 pandemic. While not every freelancer or independent professional is in the same position, it stands to reason many have struggled due to the new challenges facing businesses and sectors.
With mortgage lenders restricting the range of products they offer; many people were going to find it harder to arrange a mortgage. However, some groups are hit harder, and this is why it is pleasing to see there is a suitable level of support for a group who needs financial backing at this time.
There is a helping hand at the start of the mortgage process
The deal on offer from Beverley provides borrowers with a 12-month interest-only period, and then the arrangement switches to a full capital repayment mortgage. In the first year, borrowers will only pay the interest component of their mortgage, not the capital element.
This means it will take them longer to pay off their mortgage, but it will provide breathing space at a challenging time, and many professionals will likely be keen to read more about this offer.
A spokesperson for the Beverley Building Society released a statement to This is Money, saying, “The rate ultimately offered depends on each applicant’s circumstances and factors such as how new or established their business is, their trading track record and the extent to which they have been affected by the pandemic.”
There will be two fixed-rate terms available to borrowers, a two-year and a three-year fixed-rate. The lender says they will review the borrowers’ ability to repay the loan by looking at one years’ accounts. This opens the process to people who have been self-employed for at least one year, which is helpful for some.
The scheme is available to all professions and trades in England and Wales. The lender says aspects such as professional qualifications, experience, future prospects, the industry worked in, and a longer-term trading track record will be considered before offering a loan.
It isn’t easy arranging a mortgage if you are self-employed, but this new product might help many professionals. Anyone looking for guidance on finding their ideal mortgage should seek assistance from experts in the field.