Saving money for a deposit to get onto the housing ladder has been reported on frequently over recent months. However, it could be that those who are looking to get onto the property ladder and are self-employed it could be even worse. The FirstTime Buyer Index that is published by Aldermore, the specialist back, has shown that 67% of those looking to get on the property ladder feel like doing so is difficult.
The new report has shown that for the self-employed, 68% are finding it difficult to get the resources together to buy their first property. 62% are even more pessimistic and don’t know if or how they could ever manage getting on the property ladder. Almost one in three cite the deposit as being the biggest obstacle, with one in seven saying the largest hurdle is trying to secure a mortgage.
In this research, almost a third of those asked who have recently bought a house had to give up being self-employed just to get a mortgage, whereas 12% have to take on a second job to earn extra money in order to save for a deposit.
In order to get on to the property ladder, first time buyers have to sacrifice aspects of their lifestyle in order to save the money required. On top of this, 18% of first time buyers say they feel under pressure from family to buy, another 18% say they were feeling pressure from a partner. 30% of those who participated in the Index say that, in order to save up enough, they have had to cut back on eating out, 23% say holidays have been reduced in order to save up, whereas 21% have had to work longer hours in order to work longer hours.
In order to help, Aldermore now only require one year of accounts that are prepared by a qualified accountant, as well as the accompanying tax overview document from HMRC. Aldermore will use the latest years’ figures when making their decision to lend as opposed to an average of the last two years in order to make an assessment as long as the net profit is level or rising.
