Around 300,000 self-employed workers are ready to buy a house but say getting a mortgage is the hurdle, according to Pepper Money research.

Research from Pepper Money’s Specialist Lending Study (SLS), based on a survey of 4,000 UK adults, finds that 300,000 self-employed adults with adverse credit expect to be in a financial position to buy within the next three years.

Yet confidence in getting a mortgage remains low, with many feeling locked out by the way their income is assessed.

Beyond those with adverse credit, demand is pronounced across the wider self-employed population, with 80% aspiring to homeownership – higher than both full-time (73%) and part-time employees (66%).

The research reveals that 76% of all self-employed adults believe their employment status makes it harder to secure a mortgage, underlining the ongoing challenge of aligning non-traditional income with standard lending criteria.

At the same time, there are clear gaps in understanding the homebuying process. More than a third (36%) of all self-employed adults say they do not know what size deposit they would need to purchase a property, highlighting a significant advice gap at an early stage of the journey.

Concerns about existing debt are also shaping confidence. Among those who became self-employed in the last three years, 81% say they are worried their current level of debt could affect their chances of securing a mortgage, highlighting how financial uncertainty is compounding perceived barriers to homeownership.

Self-employed borrowers often struggle to meet the income evidence requirements of mainstream lenders.

Without a regular payslip, demonstrating consistent earnings can be difficult, even where underlying finances are solid.

The SLS also points to a broader rise in adverse credit across the UK. This year’s study found that 30% of UK adults, or 16.6 million people, have experienced adverse credit at some point in their lives, up from 15.3 million the previous year.

Economic pressures continue to push more people toward missed payments and debt.

Pepper Money sales director Paul Adams said: “The start of the tax year is often the moment when many self-employed people take stock of where they are financially and start thinking seriously about their financial goals, including homeownership.

“What this research makes clear is that aspiration isn’t the problem – this is telling at a time when confidence is low in other parts of the market. Self-employed customers are often financially resilient, but their income can be harder to assess through standard lending models.

“That’s where specialist lenders and brokers play a vital role, helping to build a clearer picture of affordability and opening access to homeownership in financially sustainable and responsible ways. As the workforce continues to change and financial lives become more varied, it’s important the mortgage market keeps pace to reflect that reality.”