"The industry must work collaboratively to update its requirements and close this “mortgage access gap” to support the self-employed."
Trussle's report shows that the self-employed make up 23% of all ‘specialist’ cases received by lenders, but approval rates are up to 14% lower than other groups.
Its figures show that approval rates for retirees (86%) and those with bad credit (89%) eclipse those for the self-employed (76%).
First-time buyers had the best approval rates overall at 90% and others borrowing at a high loan-to-value were accepted in 85% of cases.
28% of self-employed mortgage applicants and borrowers think considering future earning potential or projections would be fairer than considering past income and employment history and 26% think having a specific financial test for the self-employed would level the playing field.
Miles Robinson, head of mortgages at Trussle, commented: ”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 fewer 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."
