There was a time when being self-employed made it hard to get credit from a bank. This was pretty much accepted as one of the bad things about being your own boss, along with all the good things, like being able to control your own work life and only having to answer to yourself.
People who are new to self-employment and can't show that they have a steady income for at least a year or more can still find it hard to get loans. But if you've been running a successful business for even a year, banks will be more than willing to look at your situation and give you a fair chance to show that you're creditworthy.
People tend to think that being self-employed is less safe than working for a large, well-known, and trusted company. But this way of thinking is also changing. People used to work for the same company their whole lives, working their way up the corporate ladder and retiring with a secure pension. But those days are long gone.
Banks are becoming more aware that the job market has changed a lot in the past few years and that self-employment, freelancing, and other "alternative" ways of working are becoming more appealing and necessary for a growing number of workers.
All of this means that lenders are more open than ever to giving loans to people who work for themselves. The terms and interest rates of these loans are getting much better, and now they are almost exactly the same as loans for people with regular jobs. So, if you work for yourself, you now have the same chance of getting a mortgage as anyone else. The same thing, which is your income, will be used to figure out how much of a loan you can get.
Also, as more and more people see the benefits of going into business on their own, banks are starting to see this segment of the market as a key source of customers. So, there is more competition. This is great news for self-employed people who are trying to get credit. As there is more competition, the loans and terms and conditions that come with them will get better and better. Prices and interest rates will go down, and getting a loan will be just as easy for people who work for themselves as it is for people who work for a company.
