Mortgages can be complicated. We should know. We have been involved with that many since our formation that we implicitly understand the vagaries of the mortgage world.

But for all the terminology and complexity around them, it is possible to reduce a mortgage to pretty simple terms. 

A mortgage is a deal. It is a deal between you as an applicant, and a lender. In order to strike a deal, both sides need to benefit. But both sides also need to be confident that they are ‘good for it’.

On the part of the applicant, so much of being ‘good for it’ is to do with affordability.

A complex topic

Recent research has shown this is something many are struggling with at present. A survey from Mortgage Broker Tools has found that 43% of those brokers surveyed strongly agreed that affordability is more complex than ever. 

A further 43% answered that they agreed with that statement. This makes it clear a significant majority of brokers are of the opinion that affordability is proving to be a challenging part of what they do at present.

Means of support

With affordability being a tricky thing, finding a way to better clarify or understand affordability has been sought. 

A uniform approach is something that has been experimented with. The Bank of England’s Mortgage Affordability Test has been an attempt to provide a clearer picture of affordability around mortgage applications. However, this is edging ever closer to being withdrawn from service.

Instead, technological tools are becoming increasingly important when it comes to demonstrating affordability. The survey by Mortgage Broker Tools found that 76% of brokers are of the opinion that being able to access accurate affordability calculators is more important than it has ever been.

A familiar story

Something that has long affected contractors, freelancers and other self-employed workers is being felt across the wider industry. 

Contractors and freelancers have faced challenges around demonstrating affordability for eons. This has historically been down to a reluctance on the part of the lender to commit to a mortgage offer because of perceived instability of income.

This is despite this not being the case for most contractors and freelancers, who are generally more than capable of meeting mortgage repayments. But that hasn’t been reflected in quick decisions by lenders in the affirmative.

Many who are stuck in this situation turn to contractor mortgage brokers or freelancer mortgage brokers to help refine and review applications and give them the best chance of approval.

What is happening at present is a greater tendency for lenders to seek reassurance and evidence that applicants can meet their affordability regulations. This toll is being felt by brokers, who are finding themselves jumping through more hoops in order to land that perfect mortgage deal for their clients.

It appears the issue is no longer one faced predominantly by self-employed workers, but by applicants more generally.

Capitalising on expertise

Though we specialise in contractor mortgages and freelancer mortgages, here at Roots Mortgages we are very happy to work with people on the lookout for a classic residential mortgage too.

Our experience of working with clients who may face challenges around affordability stands us in good stead when it comes to dealing with your own application – regardless of your employment type.

Demonstrating affordability is our bread and butter. So if you are finding it difficult to do so yourself, or have concerns about this as you prepare to start applying for mortgages, then do not hesitate to bring in a partner that can help. 

With the right expertise in your corner, it is certainly possible to demonstrate affordability and strike the best deal for your situation.