Nearly half of self-employed mortgage applicants have delayed or dropped their applications due to irregular income patterns, research from Nottingham Building Society reveals. The study, surveying 2,000 borrowers and 500 brokers, found the market still favors traditional salaried employees, disadvantaging contract workers and those with multiple income sources. Over 27 percent of recent homebuyers and 49 percent of self-employed respondents postponed or abandoned applications because of how they earn.
Although the self-employed population has recovered to about 13 percent nationally (over 16 percent in London), lenders have struggled to adapt to gig economy and portfolio career trends. More than two-thirds of brokers believe non-standard borrowers will become the norm. People with thin credit records or returning expats also face barriers.
Building societies like Skipton and Nottingham offer specialized products — Skipton's Track Record mortgage uses rent payment history for 100 percent loan-to-value, while Nottingham's Worldwide Welcome supports foreign nationals. The report calls for standardized assessment of complex incomes and recognition of overseas credit histories to improve access for non-traditional workers amid rising mortgage rates.
Source: Financial Times Companies · Summarized by HeadlinesBriefing