Affordability is also being squeezed across the market
One in every three self-employed mortgage enquiries were considered unaffordable at the end of 2022, according to the latest Mortgage Broker Tools (MBT) Affordability Index.
The latest data, based on thousands of searches, has revealed that only 65% of self-employed mortgage enquiries were considered affordable.
Affordability for self-employed customers has dropped to its lowest level since MBT started recording this data in 2020.
MBT figures also showed that affordability is being squeezed across the market, with only 71% of all enquiries being considered affordable in November 2022, down from a peak of 80% in January 2021.
“With rising rates and increased living costs, it’s unsurprising that mortgage affordability is being squeezed, and it’s particularly difficult for self-employed borrowers to secure the loan size they want at the moment,” Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, commented. “In this environment, brokers can’t take affordability for granted and researching the best options for customers to achieve their desired loan sizes is more important than ever before.”
