There are many challenges facing contractors, freelancers and other self-employed workers when looking to secure a mortgage.

But one prominent issue is that some of the systems in place to help people secure mortgages are not designed to accommodate modern working methods, such as the ones adopted by the self-employed.

Thankfully, more and more lenders are becoming aware of such problems and are taking steps to address them.

One major lender, NatWest Intermediary Solutions, has now made it easier for self-employed workers and the brokers representing them to gain accurate estimates for mortgage rates from NatWest.

This is thanks to the addition of four new fields within NatWest’s Residential Affordability Calculator relevant to self-employed workers.

The four new fields in the Residential Affordability Calculator are:

  • Loan amount on capital and interest cases
  • NatWest product rate
  • Self-employed applicant one and two
  • Personal loan balance

The personal loan balance element covers factors such as any credit card or car finance balances, while the applicant’s student loan status is also a required part of NatWest’s affordability assessment criteria.

This calculator gives applicants an understanding of the kind of mortgage offers they can expect to receive, but does not represent a full agreement with the lender.

These estimates are however useful for anybody looking to work out their mortgage possibilities, and the addition of the four additional fields will certainly enhance the tool’s efficacy for self-employed workers.

What this all means is that an accurate affordability assessment will be easier to acquire for self-employed workers. This will limit the amount of consultation between brokers and NatWest business development managers for cases involving self-employed workers.

It is definitely a positive to see major lenders accommodating for self-employed workers like contractors in this way, and is hopefully something that more and more lenders will look to embrace.

If you require any guidance or support as a self-employed worker looking to secure a mortgage, Roots Finance Group can help. Simply get in touch with our team and we will be happy to discuss your situation.