By Q4 2019 there were more than 5m self-employed people in the UK, a huge increase from 3.2m in 2000. With the self-employed now making up 15% of the entire labour force, it’s a sector of the market that can’t be ignored, and one that’s currently experiencing a noticeable impact from the current COVID-19 crisis.
Although those self-employed are receiving government support through the Self-Employment Income Support Scheme (SEISS) to cover some of their losses, it’s not as generous as the scheme for those on furlough, and there are more stringent eligibility criteria. For instance, those that have registered as self-employed since April 2019 won’t receive any help and they have to have made less than £50,000 in trading profit in 2018-19.
While it’s reassuring that most lenders have by now confirmed their position when it comes to accepting furlough payments or self-employed applicants, your customers may still be concerned about their suitability for mortgages or remortgages going forward.
So what can you do to support your customers that are worried about their financial eligibility?
How Kent Reliance for Intermediaries could help
Here are some of the ways Kent Reliance for Intermediaries has tailored its product ranges to help the self-employed:
- Self-employed applicants and contractors accepted
- For those on the Self-Employed Income Support Scheme (SEISS), current income will be used for affordability purposes where evidenced
- Where the landlord has income that’s unrelated to buy to let, and is in receipt of SEISS income, the application can be considered
- Shared ownership options are available for those struggling with finding a deposit