Self-employed struggle to close mortgages: Homeowners Association

It is still difficult for self-employed workers, including freelancers, to close a mortgage, concludes the Association of Homeowners (VEH) based on a survey of 851 people in the Netherlands. Self-employed who want to close their mortgage find themselves in "a world of distrust and opposition," writes the association in their report. Although self-employed are often willing to provide all necessary documents, 82 percent end up in a heavily bureaucratized process. Moreover, loan officers frequently set up additional requirements, such as contribution of a higher down payment or a mandatory guarantee. Self-employed also pay higher premiums and consultancy costs, and they are often not eligible for the National Mortgage Guarantee. Four in ten self-employed said the bank excluded their income and they could only close their mortgage based on the income of their partners. Another four in ten purchased their house when they were still employed. "Many banks are struggling to adjust to the changing reality of the labor market, but it is irreversible," Rob Mulder, director of advocacy at the Homeowners Association is quoted saying. There is currently around 810,000 self-employed in the Netherlands. The number is increasing rapidly.