According to a survey from The Mortgage Lender (TML), which collated views from around 2,000 adults, those on zero hours contracts had the highest rate of rejection of 46 per cent.
This was followed by freelancers at 29 per cent and self-employed at 10 per cent.
TML said that those with complex income could struggle to get a mortgage as they are “perceived to be a higher risk” than those on traditional employment contracts.
The firm said that over a quarter reapplied for a mortgage, which it said was “encouraging”.
The primary reasons for rejection were no proof of deposit and lack of proof of benefits received at 13 per cent respectively.
This was followed by no mortgage guarantor and too many credit applications at 12 per cent apiece.
Poor credit score, unused credit cards, unlisted on the electoral roll, not having bank statements for the last three to six months, no full property details, not having last three months’ pay slips and P60 form all registered 10 per cent.
Steve Griffiths (pictured), chief commercial officer at TML, said: “Getting a mortgage has traditionally been trickier for those who have a more complex income, such as being self-employed, owing to the fact they are viewed to have a less predictable income stream.
“But this doesn’t make them unmortgageable. The reality is, as we recuperate from the impacts of the pandemic, and now with the rising cost of living, high inflation and interest rates, affordability continues to be a top concern for those trying to reach their homeownership goals.”
He continued: “Encouragingly, our research has found those with complex incomes have not been deterred from getting a mortgage, with many reapplying at a later stage.
“This does however highlight the importance of seeking advice from a mortgage broker and considering specialist lenders who can be instrumental in supporting those who thought it might not be possible to get a mortgage and give them the same access to opportunities to get on the property ladder as those on PAYE.”
