Self-employment leaves 119,000 people unable to move home in the South West

PUBLISHED: 11:20 26 March 2019 | UPDATED: 12:17 26 March 2019

Self-employment leaves 119,000  unable to move home in the South West. Picture: Getty Images/iStockphoto

Self-employment leaves 119,000 unable to move home in the South West. Picture: Getty Images/iStockphoto

Archant

Research has revealed nearly 300,000 of self-employed people in the South West feel discriminated against by mortgage lenders

Thousands of self-employed people in the South West are facing discrimination when they apply for a mortgage.

Research has revealed nearly 300,000 (64 per cent) of self-employed people in the South West feel discriminated against by mortgage lenders and 119,000 (25 per cent) say they would live in another property if they were paid the same as they are now but employed rather than self-employed.

The findings are from research among people who are sole traders, contractors, or running a business with up to nine employees, and suggest widespread dissatisfaction with the way self-employed people are treated when they apply for a mortgage.

The figures, which are part of a special report – The self-employed economy; an opportunity for brokers and lenders – by The Mortgage Lender show 144,000 (30 per cent) of self-employed people in the South West had reconsidered their employment situation because of the uncertainty of securing a mortgage.

More than 318,000 (68 per cent) believe mortgage lenders have a responsibility to provide a better level of support to self-employed, contract workers and business owners and 124,000 (27 per cent) think they would be refused a mortgage if they applied for one simply because they are self-employed.

Of those in the South West who have applied for a mortgage, 40 per cent found it difficult to provide the information required by the lender to assess their application.

There are 468,000 self-employed individuals in the South West, accounting for 17 per cent of the working population, according to the Office for National Statistics.

The Mortgage Lender deputy chief executive, Peter Beaumont, said: “Self-employed people in the South West are being let down by lenders, 119,000 would like to move house but feel they can’t because they’re self-employed.

“That’s around 43,000 people living in rented accommodation and 76,000 who are effectively mortgage prisoners.

“As a sector we’ve quite happily lent to married employed people when statistics show at least half of those couples are going to split up.

“Self-employed people in the region are creating employment opportunities and form the backbone of our economy at a time when many large employers are finding it difficult to sustain their business models and levels of employment. It is important lenders recognise this reality and support entrepreneurs to live in the home they can afford.

“It’s something we at The Mortgage Lender have recognised. People’s financial circumstances are constantly changing. It’s why we believe in real life lending, we understand that life doesn’t move in a straight line.”

The full report - The self-employed economy; an opportunity for brokers and lenders – also reveals a 53 per cent rise in self-employment since 2000 and that 60 per cent of the growth in self-employment since 2008/09 has been in high skilled, higher paying sectors.

Advertising, public administration and banking have seen the largest growth in self-employment while London (18.6 per cent), the South East (16.1 per cent) and the South West (17 per cent) boast the highest percentages of self-employed people.

Comments have been disabled on this article.

More from Property

Yesterday, 11:42

A housing group has spoken out after a new survey indicates fewer homes were built in North Somerset last year.

Read more
Saturday, August 24, 2019

Villagers marched through Sedgemoor District Council's offices in protest of Bloor Homes' housing plans on Tuesday.

Read more
Cheddar
Wednesday, August 21, 2019

The first step toward a potential development of 550 homes has been given the green light.

Read more
Highbridge
Saturday, August 17, 2019

Detailed plans for more homes in Congresbury will be discussed next week.

Read more
Congresbury
Monday, August 12, 2019

Government officials have urged North Somerset Council to go back to the drawing board after raising 'significant concerns' with its plans for thousands of homes.

Read more
Tuesday, July 30, 2019

Plans to build 50 homes in Lympsham would cause 'serious impact' to road safety and stretch village resources to the limit, according to its parish council.

Read more
Sedgemoor District Council
Tuesday, July 30, 2019

A housing developer says it will consider its options after being refused permission to build 66 homes, and a road through a historic orchard, for a second time.

Read more
Yatton
Monday, July 29, 2019

'Laughable' plans to extend a block of flats in Weston have been rejected.

Read more

Most Read

Comments have been disabled on this article.

Most Read

Latest from the Weston Mercury

Hot Jobs

Show Job Lists