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Mortgages: Self-employed

Question for Treasury

UIN 57074, tabled on 15 October 2021

To ask the Chancellor of the Exchequer, what discussions he has had with mortgage lenders on their treatment of payments under the Self Employed Income Support Scheme when assessing the income of self-employed mortgage applicants.

Answered on

22 October 2021

Ministers and officials regularly meet with lenders to understand their lending policies. However, decisions concerning the pricing and availability of loans, including application requirements, remain commercial decision for lenders which the Government does not seek to intervene in.

For individuals applying for new credit, it remains important that lenders are able to carry out the proper checks to ensure that these individuals are not lent to in an unaffordable way, especially if, for example, a borrower’s income has changed as a result of Covid-19.

The Financial Conduct Authority (FCA) recognises that lenders should have flexibility to decide what evidence of income they can accept from self-employed customers. Due to the wide variety of mortgage products available in the UK, self-employed borrowers may find it useful to contact a broker to help them identify the best lender for their circumstances, and prepare for and organise their mortgage application.

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