MBT Affordability Insights: Self-employed situations continue to change

"There are options for the self-employed – you just need to know where to look."

At the moment self-employed clients seem to be suffering more than most from an affordability perspective, and there are reports of lenders restricting income multiples and maximum LTVs.

Data from the latest MBT Affordability Index uncovers the difference by looking at the % of cases where at least one lender will meet the loan requested:

- 86% for first-time buyers and remortgage customers
- 82% for home movers
- 71% for the self-employed

The key thing to remember is that there are several lenders that can help this important group of clients, but the current environment puts even greater emphasis on shopping around amongst a wider group of providers.

Even with the LTV and income multiple restrictions, it's still possible to maximise borrowing potential, by utilising retained profit, operating profit and, if latest year is higher than previous years, last year's figures.

It’s also worth noting that some brokers are using this situation, which on the face of it is poor for self-employed clients, as an opportunity to talk to accountant connections to make sure they understand how brokers can help their clients. This can help to enhance an accountant’s own reputation with their clients and produce top quality leads for brokers. It’s good news all round!

So, there are options for the self-employed – you just need to know where to look. And this is where an affordability platform, like MBT Affordability, can prove invaluable for brokers – helping you to quickly and easily understand the full range of options.