You are here: Home - News -

3.5m self-employed workers refused mortgage loans

by:
  • 01/10/2014
  • 0
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.”

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.

 

There are 0 Comment(s)

You may also be interested in

  • RT @specialistsols: We’re not expecting more lenders to exit, but there may be consolidation – L&G Mortgage Club - Mortgage Solutions https…

Read previous post:
FCA opens probe into Tesco £250m profits accounting error

The Financial Conduct Authority (FCA) has opened an investigation after Tesco admitted it had overstated its half-year profits by £250m.

Close