You are here: Home - News -

Self-employed hindered by lack of trading history

  • 31/08/2011
  • 0
Self-employed hindered by lack of trading history
The ability to prove adequate trading history is the biggest barrier to the self-employed getting a mortgage, according to 42% of brokers polled by Kensington.

In a survey of 619 intermediaries, a further 23% cited the complex income structure many self-employed people have, while 15% said that self-employed circumstances do not fit standard credit scoring systems.

In addition, 12% of brokers said that the perception of how difficult mortgage finance is to obtain remains the biggest barrier for self-employed clients.

Charles Morley, head of sales at Kensington, said: “It comes as no surprise that the main hurdles for the self-employed, when it comes to getting a mortgage, are trading history, complex income and credit scoring.

“While many successful small businesses emerge from recession, it is not unusual for a high street lender to ask for three years’ trading history, whereas the self-employed will often have a complex income structure from more than one source, automated decision systems take a more black and white stance on affordability.”

Michael White, chief executive for Email Mortgages, said: “Previously, there were a number of products, which by definition, were almost designed for the self employed.

“These included fast-track products, which still required credit referencing, but  often saw a more flexible approach taken.

“Now it has all changed. As credit risk attitude has hardened, it is the self employed that have had the toughest precautions taken against them in terms of the minimum period they can be self employed for and the way in which their income is calculated.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Familes “increasingly vulnerable” as savings and wages fall

Families are failing to protect themselves despite being more worried than ever by the rising cost of living and falling...