Self-employed twice as likely to be rejected for a mortgage

Self-employed people are twice as likely to have mortgage applications rejected compared to salaried employees, new research from The Mortgage Lender has shown. The specialist home loan provider said 23% of self-employed individuals had had a mortgage application denied in the past, compared to just 12% of salaried workers. 'There are around 4.2m self-employed people in the UK, and it is typical for that number to grow when coming out of a recession, or in this case a pandemic also,” commented Peter Beaumont, chief executive at The Mortgage Lender. “While it may offer those workers more freedom, the major drawback of self-employment is the perception of income inconsistency, and consequently a greater challenge when it comes to borrowing large sums of money.” 

Daily Mail (28/05/2022)