Skip to main content
We’re here with practical IT information for your business. Access comprehensive IT resources and more.

Search

How to choose the right computer equipment for your business to increase your productivity and efficiency without it costing the earth.

Business software helps you complete a range of tasks. Choose the right software, provide support and train your staff with our introduction.

It is highly likely that you depend on the internet for some aspects of your business. Find out how you can use the internet more effectively.

Good communication with customers, partners and suppliers is vital for business success. This summary explores business communication methods.

How would you cope if your IT system failed or was breached? We cover the main IT security issues and how to protect against them.

Good IT management can help you choose, use and implement IT. Our overview helps you manage IT in a way that maximises the return on your investment.

IT support is vital if you rely on your IT system. But how can you set up an effective safety net in case things go wrong? We explore the options.

Getting the right IT is just the first step. Appropriate training, policies and working practices can help you maximise return on your IT investment.

Fear of rejection stops self-employed from applying for a mortgage

7 November 2023

One in three self-employed individuals have never applied for a mortgage and many say they haven't even tried because they assume they would be rejected.

A study by The Mortgage Lender (TML) has found that 34% of self-employed workers have never applied for a mortgage and 30% of those say it's because they didn't think they would be approved. Overall, 26% say that they had heard that it's more challenging for self-employed people to get a mortgage.

The findings show that other reasons why self-employed people have not applied for a mortgage in the past include the fact that individuals had not built up their deposit yet (36%), they're waiting for interest rates to come down (17%), they find the process too daunting (10%) or their business is less than two years old and so they don't have the necessary documentation to prove their income when applying (15%).

While 57% of self-employed people have applied for a mortgage and been successful, 15% of this group said they were unsuccessful on their first attempt. A further, 4% revealed they applied in the past and have not yet been successful. Of those who have been rejected for a mortgage previously:

  • 38% said they were not approved due to volatile income;
  • 28% said the lender they applied through calculated that they wouldn't be able to make the repayments;
  • 27% said they did not have the necessary documentation to prove their income;
  • 11% said their mortgage rejection was based on missed or late payments;
  • 11% said they had a default or a CCJ in the past six years;
  • 5% were rejected because they were not registered to vote on the electoral roll.

Steve Griffiths, chief commercial officer at TML, said: "Self-employed work is becoming an increasingly popular route, with around 4.24 million people reporting to be self-employed in July 2023; however, it's clear that some lenders, particularly on the high street, haven't necessarily caught up with this trend and aren't always equipped to deal with more complex incomes. It's unfortunate that this is putting off so many self-employed workers from even applying when they could in fact be great candidates for a mortgage. Especially when there are specialist lenders who are well placed to support their property aspirations."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.

Contact us

Make an enquiry