UCB Home Loans managing director Charles Reed said: "While the number of self-employed people remains relatively stable, the tendency for people to follow working styles that provide varying levels or multiple sources of income has been increasing over recent years.
"There are around 3.2 million people in the UK who class themselves as self-employed, accounting for about 11.5% of the workforce. However, the wider market of contract workers and small business owners - those who may fall into the target area for self-certification mortgages - now stands at around 10 million people."
UCB reached £5 billion in mortgage assets this month, and points to gradual changes in working styles as one of the main reasons for the growth in this specialist sector of the market.
In addition to changes in working patterns, the rapid expansion of the buy-to-let sector has also contributed to the growth in business. Buy-to-let mortgages accounted for 22% of total lending during the last year, and they now represent around 15% of the specialist lender's total mortgage book.
"Gross advances, which were at a record £1.9 billion at the end of March, are now sixteen times higher than the £120 million lent in 1995/96, when Nationwide purchased the company," said Reed. "In the past five years, mortgage assets have increased by £2.7 billion and pre-tax profit, which stood at £50.9 million at the end of the financial year, has risen by over 250%. Having more than doubled our mortgage assets to £5 billion in the past five years, we are now on target to double them again by the end of the decade.
"While we have been very successful in attracting new business, we remain a responsible lender and we help people buy their homes in a prudent and sustainable way. UCB has over 15 years experience in providing self-cert mortgages and has built up unrivalled knowledge, experience and understanding of this sector. We are able to make a flexible assessment of suitable borrowing levels and employ a number of techniques designed to ascertain borrowers' ability to afford repayments."
