Self employed hairdressers and mortgages

darcyscorpion

Hi. Recently turned down for a mortgage as the criteria are now stricter for self employed. One of the reasons given was because i had accepted some of the government assistance. Does anyone else have a similar experience? I wanted to top up my mortgage to buy a new house. There appears to be a lot more failures to get a mortgage in these times. Almost to the point that they have discounted my income and will now only use my partners wage. Unfortunately i had a decision in principle and an offer accepted on the property we were looking at and we accepted an offer on our house. 5 weeks down the line i got a call today to say the answer was no to more money despite an agreement in principle. Is this happening to many other people?

Slithery

darcyscorpion said:

One of the reasons given was because i had accepted some of the government assistance.

Correct. Accepting any of the government handouts is looked down on by mortgage lenders as they see it as evidence of not having enough of a cash reserve.
I'm not saying that this is right, but it is the status quo.

[Deleted User]

Happening to lots of people.   Did you use a broker to put your case to the best lender? Some are just terrible for self employed clients at the moment and some are still good to work with

hazyjo

They weren't letting furloughed employees borrow more either - or just self employed people. I had around 90% equity and was refused.