Just 65% of self-employed mortgage enquiries were considered affordable at the end of 2022, according to new data.

The Mortgage Broker Tools (MBT) Affordability Index, based on thousands of searches, showed affordability for self-employed customers has dropped to its lowest level since the study began in 2020.

In April 2022 mortgage affordability was rated at 75% for the self-employed.

Data from MBT shows that only 71% of all mortgage enquiries across the board were considered affordable in November 2022, down from a peak of 80% in January 2021.

Mortgage Broker Tools chief executive Tanya Toumadj says: “With rising rates and increased living costs it’s unsurprising that mortgage affordability is being squeezed, and it’s particularly difficult for self-employed borrowers to secure the loan size they want at the moment.

“In this environment, brokers can’t take affordability for granted and researching the best options for customers to achieve their desired loan sizes is more important than ever before. Fortunately, it’s also never been easier for brokers to carry out that research if they make use of the technology available to them.”