Getting a Mortgage When Self Employed in the Covid Era

Getting a mortgage when self-employed has always proved to be a challenge, with lenders requiring extra checks and criteria on prospective borrowers.

During the Covid era, lenders seem to have grown even more stringent on their requirements for the self-employed.

This has meant more reports of disapproval of applications when in reality the products are still available, it’s just the navigation of these often-complex cases that have grown in difficulty.

What are lenders now looking at?

With the economy taking a massive blow during the pandemic, lenders are naturally looking at the bigger picture and taking a more in-depth look into how the situation has impacted applicants’ income and work.

Essentially many applicants are finding themselves having to prove their situation has been unaffected by the current pandemic, which is a big task for many.

For example, lenders are looking at whether businesses or individuals have taken advantage of any of the government support schemes and in what context.

They want to know whether income has remained stable during the pandemic and are requesting evidence in the form of bank statements.

It is apparent that mortgage applications from the self-employed are much more intensive, requiring more time and attention than the typical applicant would experience.

Regardless of the increased intensity and scrutiny, lenders are still offering help to buy mortgages bad credit to the self-employed, but they are simply being more cautious.

And who can blame them? The additional checks are all part of their due diligence during this turbulent period.

Choosing the right lenders

It is important to be aware that not all lenders are equal in terms of their lending criteria, with HSBC being a notable example of a bank that offers more flexibility when it comes to the self-employed.

Having said that, it is important to assess whether a case has merit before the application is started, as essentially all lenders will have a baseline of what they expect.

However, one notable difference between lenders is the account history they request, some will require just one year, while others will want to see the history for the past three years.

That is why it is fundamental to use a mortgage broker is well versed and up to date with the market, as being able to scout for the best products is essential for success.

Lenders are now typically looking to see if the figures have returned to pre-covid levels and that cash levels are looking healthy.

The biggest concern is probably affordability, with lenders becoming extra cautious and not willing to budge much at all.

Brokers can help

During this turbulent time, lending criteria has changed, and mortgage applications have become much more challenging to not only locate for the self-employed but to process.

An experienced mortgage broker is worth their weight in gold when it comes to streamlining the process, signposting you to the best deals and helping you navigate any stumbling blocks.

A broker is essentially there to help you find a solution so that you can submit an application that will more likely be approved. This could mean they advise you to increase your deposit amount, provide further evidence of accounts and/or apply to a specific lender.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Estate Agent Content

Do you think that your estate agency / property business requires content? Is content marketing still a thing in 2025? Are you concerned if anyone will read your words? Is it worth investing in estate agent content? Businesses with blogs generate 67% more leads than those without. As competition for attention online increases it remains…
Read More
Breaking News

The cost of voids rises by £200 for England’s landlords

The latest analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has found that landlords have been hit with a 26% increase in the cost of void periods in the past year, equivalent to lost income of almost £200. Dwelly analysed average void period data from March 2024 and March…
Read More
Breaking News

Breaking Property News 5/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Demand Rises for Housing and Infrastructure Projects Rising demand for housing, infrastructure and energy projects across Wales has driven continued growth at Lichfields’ Cardiff office, which this year marks 25 years in the capital. The team of 17 planning professionals is one of the largest…
Read More
Breaking News

Construction continues to enjoy a season in the sun

Underlying performance is on the rise during Q.2 2025 Today, Glenigan, one of the construction industry’s leading insight experts, releases the June 2025 edition of its Construction Index. The Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise…
Read More
Love or Hate Rightmove
Breaking News

Busiest May for sales agreed since 2021

The latest insights from Rightmove show that it was the busiest May for agreed property sales since 2021, and the busiest out of any month since March 2022 May is typically a busy month in the year for agreed sales, but this year’s figure highlights the improved market conditions, as home-movers carry on following the…
Read More
Breaking News

New anti-money laundering rules now in effect: what landlords need to know

New anti-money laundering (AML) rules came into effect this month, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged. Here, Steve Bond, managing director of residential lettings for Beresfords, explains what…
Read More