Self-employed workers have
traditionally encountered difficulties in successfully applying for financial
products and services. Mortgages in particular have been considered something
of a ‘no go’ area for the self-employed, motivating many to abstain from
applying altogether.

However, evidence suggests that mortgage lenders in the UK are not nearly as hesitant to work with
the self-employed as previously thought. 

As long as those concerned can
comfortably afford the repayments and are in a strong financial position, they
have just as much chance qualifying for a competitive mortgage deal as
conventionally employed applicants.

Growing Demand, Relaxed Restrictions

According to recent figures released
by the Office for National Statistics (ONS), the UK was home to more than 5
million self-employed workers at the end of last year. This equates to
approximately 15% of the entire employed population and represents a huge spike
from the 3.2 million self-employed workers recorded 20 years earlier.

Commenting on the shifting trends in
the United Kingdom, Hodge Bank business development director, Emma Graham, told
Yahoo Finance that self-employed status is no longer the big obstacle it used
to be.

“I don’t think it [being
self-employed] makes a big difference these days, it is just as easy to get a
mortgage if you’re self-employed than if you were employed,” she said.

“Going back a generation ago it was
quite tricky, some of the requirements were quite onerous, but self-employment
is ever-growing and more popular,”

“The challenges can come if you are
newly self-employed and have a limited history of your accounts, but an adviser
will know exactly where you should go to get the best deal.”

Adjusting to the New Norm

The after-effects of the COVID-19
crisis are likely to be with us for some time, including home working becoming
the ‘new norm’ for businesses. In addition, experts believe that the upward
trend in self-employment and the pursuit of self-employment opportunities will
only continue to accelerate over the coming years.

Traditionally, it has been assumed
that self-employed status immediately raises a ‘red flag’ with lenders. In
reality, qualifying for a mortgage as a self-employed worker is no more
difficult than any ‘conventional’ case.

You simply need to ensure your
finances are in order, get your accounts signed off by a certified accountant
and produce enough evidence to support your application. In addition, broker
support is considered essential for anyone looking to apply for a mortgage as a self-employed worker.

Across all age groups, the number of
self-employed workers qualifying for mortgages is growing at record pace. In
some instances, self-employed applicants with quantifiable long-term job
security are actually being offered more than their conventionally
employed counterparts.

Lenders are increasingly acknowledging
the fact that self-employed doesn’t inherently mean ‘high-risk’. In a climate
such as today’s, it can actually mean the exact opposite.

For more information on any of the
above or to discuss self-employed mortgage applications in more detail, contact
a member of the team at UK Property Finance today.

Before choosing
investment instruments, you should consider several factors to find out what
suits you and avoid surprises.

One of the great
advantages of investing is that it allows you to build wealth more quickly. On
the other hand, the disadvantage is that depending on the type of investment;
you can put your capital at risk if you do not choose wisely.

Several factors
influence the security and growth rate of your money. However, there is no
doubt that investing is always a good decision.

For example,
simply by choosing a short-term investment that gives you a return over the
annual inflation rate, you are already protecting your money against
depreciation.

But, if you want
to grow it quickly, it is best to opt for investment instruments and funds that
offer you higher rates of return. 

The problem is
that those higher returns carry greater risk by exposing your capital to
fluctuations in national and international markets.

For you to make more informed and accurate decisions, you should follow Sofia Machulskaya’s recommended tips before investing.

1. Identify your investor profile

Analyze aspects
such as your age, your income, your family situation, the age of your children
and your investment purposes, so that you can decide what your tolerance for
risk is, what returns you want to receive and what combination of instruments
you should choose. 

2. Learn about the financial markets

Never invest in
something you don’t understand. You must be able to understand basic financial
terms and how the markets work so that you can identify risk situations and
know when it is appropriate to modify your investment portfolio.

3. Seek
advice

There a professional advisor like Sofia Machulskaya will help you define the composition of your investments according to your investor profile and will offer you complete information to make timely decisions.

4.
Decide which instruments to invest in

The advisor will
offer you various investment options depending on your aversion to risk and
your goals and timelines. But the final decision of what to buy and when to
sell is yours.

5.
Assign the amount for your investments

You don’t need to
have a large asset to start in the world of investments, but you do not need to
allocate all your savings to them, since it is most likely that you do not have
immediate liquidity.

6.
Diversify your portfolio

You have probably
heard the saying “Do not put all the eggs in only”. It is the concept behind
investment diversification.

If you invest in
different types and investment instruments, you will compensate for the
possible losses of some with the gains of others.

7.
Compare administrative costs

Pay attention to
the portfolio management fees charged by the brokerage house or investment
fund. 

You don’t want to
make multiple small investments in a fund that charges you a transaction fee.

Get informed and get good advice from Sofia Machulskaya. You will begin to see your asset grow to achieve your financial goals without taking unnecessary risks.

The difference between
financial investment and economic investment is explained here, and the
benefits of which type of investment are good for companies.

The financial
investment consists of investing in strategic and non-tangible assets so that
the business of a company or an individual flourishes.

It consists of
allocating resources in a financial asset such as a bank account, stocks,
investment funds, currencies, and derivatives. 

Also, purchases of
financial assets can be made. This type of investment may or may not produce a
change that is the company may or may not receive benefits in the short term.

The business can make
a profit by placing money in financial investments such as an accrual savings
account. 

The financial investment can also be an expenditure on education or a business initiative that not only allows obtaining economic benefits but also generating work and wealth.

Economic
investment 

By making an economic
investment, resources are put into something that can generate benefits above
an initial cost.

The economic
investment would consist of the purchase or upgrade of machinery and equipment
or the addition of a workforce that helps or improves the company, such as a
tuition reimbursement program for employees.

In both economic and
financial investments, the company undergoes a cost-benefit analysis to
consider the potential return on investment. 

By the consideration of Sofia Machulskaya, these investments have risks. For example, investing in training programs could cost the company money if the employee leaves work a month later.

Difference between spending and investment

In financial terms,
spending and investment are two widely used concepts. Both involve an immediate
or deferred payment of the money. 

The difference between
these concepts will be the purpose of each one and its consequences in the future.

The costs are
expenditures that relate to the purchase of goods or enjoyment of service to
meet a need. 

Over time, the
consumption of that good or service occurs without expecting to obtain a return
in the future. An expense is immediate.

However, when we talk
about investments, it is the opposite. It is not an immediate expense but is
made to receive a future reward. 

A return on the amount
that is initially disbursed is expected, either with the same monetary nature
or with a more intangible nature, such as investments in education, health,
etc.

Other Types of Investments

Operating investments: 

These are the
investments made by the company to acquire current assets, that is, those that
make up the money-merchandise-money cycle by packaging, raw materials, fuels,
office supplies.

In a strict sense, are
not considered investments.

Structural investments: 

These investments are
made to acquire non-current assets that include machinery, buildings,
computers, cars, etc. 

These elements are
called fixed assets since they last over time for several financial years.

Renewal investments: 

These are investments that replace elements that, due to the passage of time or for any other cause, have become useless and unusable for productive activity. The suggestion of Sofia Machulskaya is a good option in case of renewable investment.

Expansion investments: 

These are investments
made to add new elements to those that already exist in the company to increase
production.

Innovation investments

These investments
substitute elements for others that incorporate technological improvements and
advances.

It is all about economic and financial investment, and you can get any assistant from Sofia Machulskaya to get business help.