Getting on the property ladder is difficult at the best of times, even more so for the self-employed. In fact, things are so bad, almost two-thirds (62%) of self-employed people do not know how they will ever manage it. New research from Aldermore has revealed that almost seven in 10 (68%) self-employed first-time buyers think […]
Getting on the property ladder is difficult at the best of times, even more so for the self-employed.
In fact, things are so bad, almost two-thirds (62%) of self-employed people do not know how they will ever manage it.
New research from Aldermore has revealed that almost seven in 10 (68%) self-employed first-time buyers think that getting on the property ladder is difficult and nearly a third (32%) that have recently bought a property have given up being self-employed in order to get a mortgage.
For almost one in three (32%) raising the deposit is the biggest obstacle, whilst for one in seven (14%) the biggest hurdle is just being able to secure a mortgage.
Meanwhile, over one in 10 (12%) currently trying to save for a deposit have had to take on a second job to earn extra money.
When asked what could be done to improve the lot for first-time buyers, the key request is to address rising house prices (46%).
For two in five (39%), an extension of the government’s Help to Buy schemes would be gratefully received, whilst 30% just want to see the whole house buying process simplified.
For 37% of those who are self-employed, introducing better mortgage products is important, as well as adapting the criteria for self-employed borrowers (33%).
Charles McDowell, Aldermore’s commercial director of mortgages, said: “First-time buyers are the driving force of the property market but our index reveals just how hard it is for them to get on the ladder, even more so for those who are self-employed. Low levels of confidence amongst these groups will have ramifications further up the housing chain so it’s imperative that more is done to support both segments of our society, particularly with levels of self-employment continuing to rise in the UK.
“Raising a deposit is something that continues to be cited as the biggest hurdle by first-time buyers, with a large proportion unable to do so without family help. With recent data showing house prices increasing by 2% in the month of February, there seems to be no let up for first time buyers who are having to stump up more savings up front. House prices are inevitably impacted by demand and supply and more needs to be done to address the latter.
“In the housing white paper the government stated it will focus on delivering the right type of housing in the right places through a new assessment of housing needs, and this is something we fully support to better provide for first time buyers.”
