Nearly one in seven (14%) self-employed borrowers are less likely to get their mortgage approved than any other ‘under-served’ group.
An ‘access gap’ is forming between the employed and self-employed when when it comes to mortgage applications, according to online mortgage broker Trussle.
Findings from Trussle’s industry report, the Mortgage Saver Review, revealed the self-employed make up 23% of all ‘specialist’ cases received by lenders.
Since Trussle’s inception in 2015 to date it has seen 54% more mortgage applications from the self-employed compared to any other under-served group. These included first-time buyers, retirees, those on low income and those with adverse credit.
Miles Robinson, head of mortgages at Trussle, said: ”The government encourages entrepreneurship, but the mortgage industry is not keeping pace with how fast the self-employed sector is expanding.
"This group is being let down time and time again with a challenging and confusing mortgage journey, which is resulting in less mortgages being approved by lenders.
"Enough is enough. The industry must work collaboratively to update its requirements and close this “mortgage access gap” to support the self-employed.
"We’re using our own data to design flexible products for specific under-served groups, like the self-employed. This will be a significant step in our commitment to making mortgages fairer for all.”
The research found that 28% of self-employed mortgage applicants and borrowers think considering future earning potential or projections would be fairer and over a quarter (26%) think having a specific financial test for the self-employed due to their different needs would level the playing field.
