Research from specialist lender Kensington has found that 24 per cent of adults who have been self-employed for more than 12 months have been turned down for a mortgage.
Meanwhile, 10 per cent of self-employed people were unable to find a mortgage from any provider.
Almost 30 per cent of the UK population, or 15 million adults, having been self-employed for more than a 12 month period at some point in their life – 37 per cent are men and 22 per cent are women, with those in Scotland, London and Eastern England more likely to be self-employed.
Around 15 per cent of the country’s workforce or 4.6 million people are currently self-employed in the UK, which is the highest proportion than at any point since official employment records began.
If this trend continues, by 2054, the self-employed will make up 30 per cent of the UK’s workforce, according to analysis by Kensington.
The ability to secure a residential mortgage was a concern for 11 per cent of people when they were self-employed, particularly those in the West Midlands (25 per cent). Overall, the greatest concerns for over three in ten self-employed people were the challenge of finding new business, securing funding or finance / cash flow and where the next work or project will come from.
Keith Street, Head of Kensington, said: “It’s very clear from our research that not only are the self-employed the fastest growing part of the UK workforce, but that the prospect of being refused a mortgage is a real threat and an understandable concern for them.
“At Kensington we have the underwriting expertise to make individual lending decisions for people whose circumstances are not easily assessed by a tick-box automated approach. We believe that self-employed workers can benefit from this approach and the guidance offered by a professional mortgage adviser.
“Our message is clear – if you are self-employed, your mortgage options are not limited to the high street. Speak to an independent adviser to find the most appropriate mortgage for your circumstances.”
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