There was a time when being self-employed mean that you would have a very hard time ever getting any credit from a bank. This was pretty much accepted as one of the downsides to self-employment that would go hand in hand with all the benefits such as freedom to control your own working life and only answering to yourself.
It is however, still the case that for people who are new to self-employment and can not prove a steady income over at least a year or more, it can be very difficult to get loans. However, if you've been operating successfully for even just a year, you will start to find that banks are more than willing to consider your circumstances and give you a fair shot at proving your credit worthiness.
There is a strong view that being self-employed offers less security than being employed by a well respected and trusted large company. However, this perception is also changing. Gone are the days when people were employed by the same company for their own working life, where they would gradually work their way up the corporate ladder and retire to a secure pension.
Banks are increasingly aware that the employment landscape has changed dramatically in recent years and that self-employment, free lance work and other such 'alternative' working arrangements are becoming more and more attractive and necessary for a growing number of workers.
All this means that lenders are more willing than ever to consider self-employed workers for loans. The terms and rates for such loans are improving dramatically so that now, they are offered on essentially identical terms to those offered to traditionally employed workers. Therefore, if you are self-employed, you are now just as likely to be approved for a mortgage as anyone else. The same basis will be applied to determine the amount of the loan you are eligible for, sometimes earnings.
Also, as more and more people are beginning to see the advantages to setting up in business by themselves, banks are beginning to view this area of the market as an important source of customers. Thus, competition is increasing. This can only be good news for those who are self-employed and are trying to get credit. As competition increases, the loans on offer and the terms and conditions that govern them, will get ever more attractive. Prices and interest rates will come down and getting a loan will be every bit as possible for the self-employed as it is for the traditionally owned.