Brokers have called on the Government to intervene as an increasing amount of self-employed borrowers are turning to secured loans instead of remortgaging because of the tougher requirements posed by mortgage lenders.
They claim the self-employed are being forced to resort to other lines of credit as lenders’ requirements are too inflexible.
Email Mortgages chief executive Michael White says: “There are a huge number of people who fall into the category of recently self-employed and they fast become an underclass of borrower if they are denied standard mortgages because they are deemed too high risk.
“Secured lenders just seem prepared to take a more risk-pricing view of the market. These people may end up with unsecured lenders. That can’t be good. This is where the Government might come in.”
Emba group sales and marketing director Mike Fitzgerald says: “There should be a lot more help for self-employed people. The Government should put pressure on the lenders to do more in this area.”