More than three-quarters of self-employed people are concerned about their prospects of getting a mortgage, a Pepper Money study reveals. 

The study of 6,000 adults conducted by YouGov found that 77% say that being self-employed makes it more difficult to be approved for a mortgage.

Pepper Money says one challenge for the self-employed is that many lenders base the affordability of a mortgage on the average of the last three year’s profit. 

However, it suggests that with Covid impacting most businesses in 2020, many have since made stronger profits. 

The study found that 20% of self-employed people say that their business made over 10% more profit in the last year than the previous two years. 

Pepper Money sales director Paul Adams says: “The self-employed play a vital role in the country’s economy and the respondents to the survey are largely correct in that it can sometimes be more difficult to secure a mortgage as a self-employed person. But it doesn’t have to be that way.”

Meanwhile, the lender’s research found that a quarter of all workers earn variable income from overtime or bonuses.

Adams adds: “The ability to consider this additional income is often an important factor in helping them to achieve the mortgage they deserve.”