An estimated 300,000 self-employed adults with adverse credit are expecting to be in a financial position to buy a home within the next three years, according to a new study by Pepper Money.

The specialist lender’s findings however also indicated that confidence in accessing a mortgage remains low, with many feeling locked out by how their income is assessed.

Pepper Money’s latest Specialist Lending Study, based on a survey of 4,000 UK adults, showed that 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 revealed 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, Pepper Money found clear gaps in understanding the homebuying process. More than a third (36%) of all self-employed adults said they don’t know what size deposit they would need to purchase a property, highlighting a significant advice gap at an early stage of the journey.

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

Sales director at Pepper Money, 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.”

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