Tough conditions for self-employed borrowers

Glen McLeod

According to advisers across the market, the self-employed are finding it more difficult to take out a home loan, with lenders placing deals under the microscope.

Advisers told TMM Online that banks are asking whether sole-traders have taken the government wage subsidy. They say banks are treating earnings projections differently, affecting clients' ability to borrow. 

Glen McLeod of Edge Mortgages said: "With regards to self-employed one of the banks is taking 70% of the 2019 financials as the maximum that they will attribute towards income for clients. It does make it extremely tricky when trying to put together an application."

He expressed frustration that direct deals were being treated differently.