Freelancers fear mortgage rejection

In this fortnight's mortgage round-up, consumer journalist Christine Toner looks at why freelancers fear mortgage rejection, how borrowers are seeking certainty and the increasing appeal of cashback mortgages
Freelancers fear mortgage rejection

milennial

Freelancers fear mortgage rejection

Around one million freelance workers are considering quitting because they fear they will struggle to get a mortgage, new research has revealed.

In a survey by The Mortgage Lender, one in five freelancers said they were reconsidering their employment situation because they had either been refused a mortgage or worried that they would be as a result of being freelance.

The research claimed banks are discriminating against self-employed people, despite 4.9 million people in the UK working for themselves.

If you’re worried about getting a mortgage, see our guide on being self-employed and buying a home for top tips and advice.

Borrowers seeking fixed rates

More and more borrowers are opting for fixed-rate mortgages as uncertainty about what will happen post-Brexit takes hold.

According to figures from Experian, in November 84% of mortgage shoppers were searching for fixed-rate deals, up from 74% in September.

Amir Goshtai, managing director of Experian Marketplace & Affinity, said: “Mortgage shoppers have switched their attention to fixed-term mortgage deals to protect themselves from any future rate rises.

“But it’s important for potential homeowners to consider all their options – after all, buying a house is likely to be the largest purchase anyone will make.

“If people are either on a standard variable rate, or approaching the end of their introductory deal, then now is the time find the next mortgage as the potential savings are significant.”

Want to make sure you get the very best deal available? Get free, unbiased advice from our partners at London & Country today. You can even start the process online and speak to an adviser at any point.

Cashback deals on the rise

The number of mortgage deals offering cashback incentives is increasing, according to Moneyfacts.co.uk.

There are currently 1,459 residential products available with cashback offers, almost two-and-a-half times more than the number in November 2011, when it stood at 627. According to Moneyfacts these deals now make up 29% of the overall mortgage market, up from 19% in 2011.

Darren Cook, finance expert at Moneyfacts.co.uk says: “Buying a new home or remortgaging your existing deal can be an expensive process. An offer that contains cashback may help to soften the immediate costs that this process incurs.”

But Paula Higgins, chief executive at HomeOwners Alliance warned that borrowers shouldn’t be too swayed by incentives.

“Don’t be lured in by offers of cashback. Look at the cost of the mortgage overall. It’s essential to seek unbiased advice from a broker and consider all factors before choosing a mortgage,” she says.

Today’s best mortgage deals

Click below to see more best buys to see the full range, or speak to London and Country for fee-free expert mortgage advice on 0800 073 2326

Subscribe
Notify of
guest

0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
?>
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookies are required for the website to function correctly.

Show details
Analytics Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping these cookies enabled helps us to improve our website.

Show details