Majority of self-employed struggle to get on ladder
Nearly seven in 10 (68%) self-employed first-time buyers think that getting on the property ladder is difficult and three in five (62%) do not know how they will ever manage it, according to new research from Aldermore.
The specialist lender said that pulling together the required deposit is the biggest obstacle, affecting one in three (32%), while for one in seven (14%), the biggest hurdle is just being able to secure a mortgage.
Nearly one in three recent first-time buyers told the lender that they had to give up working for themselves and take a job in order to get a mortgage. One in 10 (12%) currently trying to save for a deposit have had to take on a second job to earn extra money.
The struggle is real
It’s hard for many first-time buyers, whether or not they are self-employed, with two thirds (67%) of all aspiring first-time buyers admitting that getting on the property ladder is difficult.
Almost one in five (18%) say they are under pressure from their family to buy, while a further 18% say they are feeling the pressure from their partner.
But they need to make sacrifices to save for the deposit. Nearly one in three (30%) have cut back on eating out, almost a quarter (23%) have cut out holidays while over one in five (21%) have been working longer hours.
Charles McDowell, Aldermore’s commercial director, mortgages, says: “First time buyers are the driving force of the property market but our Index reveals just how hard it is for them to get on the ladder, even more so for those who are self-employed.
“Low levels of confidence amongst these groups will have ramifications further up the housing chain so it’s imperative that more is done to support both segments of our society, particularly with levels of self-employment continuing to rise in the UK.”