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On Knowledge Bank in May there has been a significant rise in the number of brokers searching for lenders that would accept self-employed borrowers and borrowers looking for loans in later life.
The criteria-based sourcing system’s criteria index has found both categories feature in almost every monthly list and the search for loans for self-employed borrowers has been in the top two for 10 out of the past 12 months.
Stretching borrowing limits is one area that has remained constant through the past 12 months and searches on maximum loan-to-value appear in almost every top five list.
Nicola Firth, chief executive of Knowledge Bank, said: “Every single month in every single product category the list of the most searched for criteria has changed.
“This is remarkable and puts into perspective the challenge that brokers face in finding a home for their client’s borrowing needs.
“For too long now the expectation has been that clients have access to published products but this is simply not the case. Brokers are becoming increasingly aware that it’s no longer about the borrower choosing the lender but the lender choosing the borrower.”
For residential cases, the most searched term was maximum age at end of term, followed by self-employed and maximum age at application, while for buy-to-let the top searches were lending to limited companies, first-time landlord and the requirement to be a homeowner.
For second charges brokers searched for maximum age at end of term the most, followed by mortgage or secured loan in arrears or defaults and maximum LTV.
For equity release it was maximum LTV and affordable housing, while for self-build the most searched terms were first-time buyers and custom build, interest-only during the build.
Furthermore, for bridging the most searched term was maximum LTV, followed by regulated bridging and maximum term of the bridge, while for commercial it was semi-commercial properties, commercial investment properties and maximum LTV for commercial investment properties.
The most searched team for overseas cases was age gap between applicants, expatriates and maximum LTV.
Firth added: “When we’re out and about talking to brokers about Knowledge Bank we very often have conversations with advisers who have started an application for a product only to later find out that their client falls outside of a criteria condition.
“This is hugely frustrating for both broker and client as the search process has to start again, which means delays and disgruntled clients. I believe that it is now imperative that brokers perform a criteria search prior to product sourcing so that the borrower knows the products they actually qualify for.
“Additionally, with ever increasing, and ever-changing regulation it is crucial that brokers can defend their product selection when it is based on criteria restrictions and not price.
“Thankfully this is one problem that has a simple and straightforward solution with the use of a criteria search system like Knowledge Bank.”
Written by Michael Lloyd via mortgageintroducer.com
June 13, 2019
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Despite the stresses and uncertainties around self-employment and the gig economy, research by INSEAD suggests the self-employed have notably better mental health, happiness and energy than the rest of the workforce.
Researchers from the French-headquartered global business school compared the experiences of self-employed Britons compared with the wider UK population. It found that on virtually every measure, self-employed people performed higher than the general population.
Presenting their findings in the paper The Effects of Self and Temporary Employment on Mental Health: The role of the Gig Economy in the UK, they found that people working as part of the gig economy consistently had better concentration, were more confident, had higher feelings of self-worth. They also tended to drink less alcohol, and performed better on mental health measures.
“We recorded a consistent pattern of improvements across drivers of mental health,” the report’s co-author, Mark Stabile, said.
“Self and temporary employment support the ability to concentrate, not being constantly under strain, confidence, belief in self-worth and happiness.”
According to Professor Stabile, a professor of economics at INSEAD and academic director at the Stone Centre for Wealth Inequality, the researchers used a mental health score called GHQ to compare individuals, using a scale from 0 to 36.
Being self-employed delivered a 33 per cent higher mental score than the wider workforce, or 8 points difference on the scale.
Temporary workers score lower
The report cautioned, however, that some precarious jobs, such as temporary roles, likely offer less control and satisfaction, and as such may be detrimental to mental health.
“Self-employment is positively and significantly associated with mental health and with physical activity. It is also positively associated with alcohol spending,” the report stated.
“In contrast, temporary employment is negatively associated with health: indeed, temporary jobs are negatively associated with the GHQ... and positively associated with the uptake of sleeping pills.
“Combining these two groups [still] yields a positive and significant coefficient on mental health (although smaller than self-employed alone).”
Implications for the workforce
The research, Professor Stabile said, gives individuals, employers and regulators “food for thought” about how to provide work in ways which positively influence mental health.
“This paper offers food for thought for employers, full-time employees and unemployed worldwide. The more people feel they have flexibility and control in the job, the bigger the chance you will see improvements in mental health,” he said.
“We need to help workers shape the way they earn a living everywhere.”
Surveys, businesses share similar findings
INSEAD’s findings match the results of other surveys into the effects self-employment has on health and well-being.
A poll of 1,000 Australians last year found that self-employed people were more than twice as likely to rate their career satisfaction at nine out of 10 or greater than employees — despite them spending more hours working each week than employees.
Earlier this year, several Australian SMEs and family-owned businesses revealed their approach to boosting sense of purpose and satisfaction among their respective employees, and how doing so has and is achieving results for their bottom line.
Meanwhile, a CGU Insurance poll of 2,000 people found that the greatest barrier to becoming self-employed in Australia relates to a perceived negative culture around ambition and so-called “tall poppy syndrome”.
Not always the caseHowever, Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman, told My Business last year that the stresses associated with running a business combined with a culture of “just suck it up” can work to reverse this trend.
She added that a reluctance on the part of business owners to seek help and support when they need it most is also a common problem.
Written by Adam Zuchetti via mybusiness.com.au
June 14th, 2019