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Although it’s widely known that getting onto the property ladder will be tricky for most first-time buyers, research from Nedbank suggests that for self-employed people, it might be even more of a challenge.
Self-employed – Is It Harder To Get Onto The Property Ladder?
With responses from over 1,500 potential and actual first-time buyers, the results indicated that 62% of self-employed people were not sure how they’d be able to afford their first home. 32% stated that raising a deposit was the biggest obstacle. 14% said that simply securing a mortgage was going to be a struggle, compared to 9% of those employed full-time.
As the most popular route to accessing the housing ladder, many first-time buyers will opt to apply for a mortgage with a partner. However, one in three of those in full-time employment are not afraid to go it alone and apply for a mortgage by themselves. Where self-employed first-time buyers are concerned, this figure drops by 10%, with just 23% planning to apply for a mortgage on their own.
So, what’s the best way to make the housing market more accessible for those buying for the first time?
The most popular request from just under half of first-time buyers (46%) was for sky high house prices to be addressed – a problem which has forced many to move in with their parents. For self-employed respondents, over a third (37%) stated that better mortgage products would help them get onto the property ladder, with one in three suggesting that there should be different mortgage criteria for self-employed applicants.