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Tuesday, March 19, 2019


Self-employed workers drive specialist mortgage demand

Green Box | 15:02 Friday 16th March 2018

Self-employed customers represent one in five of all mortgage intermediary cases (21%), new research has shown.

According to Paragon's Q4 2017 Financial Adviser Confidence Tracking (FACT) index report, the highest demand for specialist mortgages came from self-employed workers.

Intermediaries reported that the next most popular types of specialist mortgage business were interest-only (15%), complex income (14%), high LTV (14%) and lending into retirement (11%).

Just 7% of specialist mortgage applications was made up of low income business in Q4 2017, followed by adverse credit business (6%).

More than a quarter of intermediaries (26%) said that they expected to see an increase in second charge mortgage business in the next 12 months.

John Heron, managing director of mortgages at Paragon (pictured above), said: “It seems clear from this latest research that complexity around employment and income are the most significant reasons that intermediaries review the options available from specialist residential lenders.

“Customers with these characteristics are more likely to benefit from the detailed individual approach to underwriting that lenders in this segment of the mortgage market can deliver.

“With employment patterns continuing to become increasingly diverse and complex, we may well see this area of the market expanding going forward.”

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