Mortgage affordability rules are hampering borrowers’ career aspirations and entrepreneurial ventures, new research suggests.
A survey of 500 brokers by Nottingham Building Society found that concerns over meeting lenders’ income requirements are holding borrowers back or delaying their plans.
More than one in five brokers (22%) say clients have to take extra steps to prove affordability because of their career choice or working pattern, while 17% reported cases where lenders had turned applicants down outright due to income complexity.
A further 16% of brokers say clients have experienced previous issues with mortgage applications linked to their career.
Just under one in five brokers (18%) say clients have had to rethink their chosen career, pursuit of entrepreneurial ventures or passion projects because they fear it would harm their mortgage chances.
Meanwhile, 15% report that clients worry starting their own business would jeopardise their ability to buy a home.
Despite these hurdles, tailored advice is helping borrowers with 17% of brokers saying this enabled their clients to feel more confident.
Meanwhile, 15% of advisers say that some lenders are showing greater flexibility around income or employment status.
Nottingham Building Society chief lending officer Aaron Shinwell says: “Careers in the UK are more varied than ever, but mortgage rules still favour the traditional 9-5.
“Our research shows that too many aspiring homeowners are holding back on life decisions — whether that’s taking a dream job, starting a business or pursuing a passion — because current lending models don’t account for the realities of modern work.
“At the same time, there are encouraging signs that some lenders are adapting, with brokers reporting cases where tailored support or greater flexibility has given clients new confidence.
“That balance of caution and innovation is key — and it underlines the importance of lenders continuing to evolve their products and criteria.
“Our priority is ensuring borrowers aren’t penalised for ambition or circumstance.”
