TML: a third of the self-employed increased their unsecured debts

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According to a study by The Mortgage Lender (TML), a third of independent homeowners increased their unsecured debt and a quarter deferred mortgage payments.

The survey, conducted in March of 1,000 current and aspiring independent homeowners, found that unsecured debt, including personal loans, credit cards and overdrafts, increased by an average of £ 2,312 over the past year. the last year.

A quarter (25%) said they took a mortgage deferral, 16% took a break of up to three months, and 9% deferred payments for four to six months.

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In the UK, an additional 81% of self-employed people continued to pay off their unsecured debts, but 9% missed their credit card payments, 5% reported an unpaid personal loan and 8% failed to repay other debts.

A deterioration in their finances meant 55% believed they wouldn’t be able to borrow the amount they currently owe on their mortgage if it was based on their last year’s income.

Steve Griffiths, Sales and Product Manager at The Mortgage Lender, said: “The past year has been difficult for everyone, but self-employed people feel they have been disproportionately affected by the pandemic, increasing personal debt and postponing mortgage payments just to get by. .

“Almost 60% of those polled felt their experience with the pandemic was worse than an employee and the majority did not receive any financial support from the government.

“Nonetheless, there are millions of self-employed people who are contributing to the economy and economic recovery.

“It is vitally important that there is a thriving and competitive specialty mortgage industry that is able to provide criteria and products that meet the needs of this segment of the population to ensure that they are not excluded from the market. housing or trapped in a house that no longer meets their needs.

“When we launched our residential line earlier this year, it was for people like the self-employed, those with complex incomes and credit problems in mind. “


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