Mortgage caution: an SEISS claim could jeopardize your prospects of obtaining a loan.
A MORTGAGE WARNING has been issued to Britons because certain lenders are refusing to lend to self-employed people.
Securing a mortgage is a crucial step for anyone looking to buy a home or remortgage their current one. Government assistance, on the other hand, may be restricted, despite the fact that it clearly provides self-employed persons with the assistance they require. According to research, a number of lenders are refusing to lend to self-employed people who received assistance through SEISS.
SEISS, or the Self-Employment Revenue Support Scheme, has aided self-employed people in covering their costs as a result of the pandemic’s lower income.
Those who took advantage of this type of assistance, however, are now finding it difficult to meet the rigorous affordability requirements of some banks and building societies.
Money Saving Expert Martin Lewis recently raised this topic, warning of occasions when this could happen while speaking on ITV.
While getting an SEISS award was not a guarantee that a person’s mortgage application would be denied, he noted it could have an impact.
Some have claimed that the grant demonstrates that a person’s business, and hence their income, has been harmed.
As a result, lenders may be hesitant to provide a mortgage because they are concerned that someone would default on payments.
Bluestone Mortgages’ Managing Director, Steve Seal, had something to say about it.
“It’s no surprise, however, that when people need mainstream lenders the most, they’re let down by them,” he said.
“We’ve known for months that in the aftermath of the pandemic, more potential homeowners will be unable to realize their aspirations because furlough and self-employment will compel traditional lenders to turn them down.
“It is clear from our talks with brokers that many would-be borrowers who don’t match the typical requirements of mainstream lenders have the financial wherewithal to make their mortgage payments, and we would encourage the market to think more holistically.
“As a specialist lender, we are committed to assisting borrowers who have been turned down by traditional lenders, and we are working with brokers to ensure that they have the resources they need to assist these individuals.”
When it comes to securing a good bargain, self-employed folks may have restricted options.
Many people have been advised to think about the situation carefully and explore their choices.
However, SEISS has. “Brinkwire News in Condensed Form.”