Mortgage News
3.5m self-employed workers refused mortgage loans
Research from specialist lender Kensington reveals 3.5 million people who have been self-employed for 12 months have been turned down for a mortgage.
Almost 30% of people have been self-employed at one time or another, which is 15m people, but 24% of those have been refused a mortgage, including 10% who were completely unable to secure a mortgage from any provider.
The mortgage discrimination affects men more than women, because 37% of men and 22% of women have been self-employed, with those in Scotland, London and Eastern England more likely to work for themselves.
Being able to secure a residential worried 11% of self-employed people, although this follows finding new business and securing funding or cash flow.
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.”
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Private equity firms Blackstone Tactical Opportunities and TPG Special Situations Partners (TSSP) agreed to buy Kensington in early September from South African parent Investec for £180m.
The deal is expected to strengthen Kensington’s specialist lending capabilities, confirmed the bank.