Scotland’s multi-billion ‘wealth creators’ face ‘unfair’ mortgage rejection

Ryan Etchells of Together | Supplied

Many self-employed people say being unable to prove a steady, monthly income has limited their chances of getting a home loan, according to new analysis by specialist property lender Together. Some 84 per cent of those surveyed said they felt that mortgage lending criteria is pitted against self-employed mortgage applicants.

Meanwhile, 78 per cent said their self-employment status has made it more difficult to secure a mortgage and 90 per cent felt pressured to take on extra work just to help them prove their income on paper.

Scotland has a large number of self-employed people who could be facing challenges with getting a mortgage, despite being financially successful. There are 283,700 classified as self-employed north of the border and their income levels have grown more than 35 per cent in the last 10 years.

Together is calling for a re-think of automated “one-size fits all” decisions by banks to unlock the home-owning ambitions of millions of self-employed workers, kick-starting the housing market by freeing up rental properties, as well as providing opportunities for developers.

Ryan Etchells, chief commercial officer at Together, said: “The country’s self-employed workers are crying out for lenders to support their home-owning ambitions.

“In economically tough times, lending appetites for mortgage applications considered complex dwindle to almost nothing, which we would say is unfair when it comes to the nation’s self-employed wealth creators.

“Specialist lenders can offer bespoke underwriting to get to know the borrower’s individual circumstances. It would be fantastic to see other lenders following suit, providing the same level of support for this large but underserved section of the workforce.”