Will lending money to Lloyds and Halifax grant recipients accept SEISS as allowed income. However, if this increases revenues above the levels observed in the years before COVID, the previous years will continue. If the total income, including the SEISS, is lower than in previous years, then we will take the figure that includes the SEISS. The good news is that even applicants who have been suspended or receive income from the Self-Employment Income Support Plan can continue to apply for a mortgage, depending on their circumstances.
A survey conducted in April by Mortgage Solutions revealed that six out of ten mortgage brokers believe that product availability is declining for self-employed borrowers, while the criteria are increasingly stringent. This is Money asked the UK's top mortgage lenders what their policies were when it came to home loans to the self-employed. Mortgage lenders, such as Furness Building Society, Foundation Home Loans and Accord Mortgages, will consider mortgage applications from customers who have used SEISS with minimal warning, but other lenders will only do so with additional stipulations. Remortgaging may help some homeowners switch to a cheaper and lower rate, but some lenders will evaluate affordability as if the applicants were new borrowers, leaving some self-employed homeowners worried about whether they'll end up stuck in their current contracts.
Mortgage providers that will not currently consider applications from SEISS plaintiffs include Natwest, Precise Mortgages and Ipswich Building Society. Because a mortgage is insured against your home, it can be garnished if you don't meet your mortgage payments. If you decide to apply for a self-employed mortgage, you should be prepared to provide three months of bank statements and, ideally, at least two years of accounts, although this will vary. Applying for a mortgage for self-employed workers during Covid-19 can be a bit overwhelming, but there are UK lenders who have made adjustments to their criteria.
Research by Mortgage Broker Tools (a platform used by mortgage counselors) suggests that nearly a third of mortgages that are self-employed are now effectively “unaffordable,” and that the maximum amount that these customers can borrow has fallen by 3% since August. With many people in need of help and few mortgage providers lending, Pete was very successful in going the extra mile to find mortgages for people that many others considered lost causes. Some mortgage providers are wary of lending to anyone who has applied for SEISS support, as this could be an indication that their employment is uncertain or that they are struggling financially. Satnam Sidhu, a mortgage expert at Haysto, offers his advice on how self-employed people can prepare and prepare their finances before applying for a mortgage.
Peter Beaumont, CEO of The Mortgage Lender, says that mortgage brokers and self-employed applicants have told him about the difficulties of applying for a mortgage or remortgage.