Mortgage affordability for self-employed customers has dropped to its lowest level on record, according to the latest Mortgage Broker Tools (MBT) Affordability Index.
The data, based on thousands of broker searches, revealed that just 65% of self-employed mortgage enquiries were considered affordable at the end of 2022.
This is the lowest level since MBT started recording the data in 2020 and marks a fall from 75% in April 2022.
Data from MBT has indicated that affordability is being squeezed across the whole market, with only 71% of all enquiries being considered affordable in November 2022, down from a peak of 80% in January 2021.
“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,” said Tanya Toumadj, CEO at Mortgage Broker Tools.
“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.”
Latest News
-
House prices drop in September as annual growth halved
-
More than 34m UK adults face retirement savings vulnerability
-
PM confirms triple lock will become ‘annual double lock’ after next general election
-
Half of aspiring homeowners would use pension savings for home deposit
-
Industry divided over Your First Home scheme
-
Albatross Lending Group joins the BDLA
AI, finfluencers and the future of broking
The mortgage industry is evolving faster than ever. In this MoneyAge video, we examine the opportunities and challenges redefining the broker landscape, from AI-powered lending and changing customer expectations to housing affordability, property supply and the rise of financial influencers. Our guest from Chorley Building Society shares practical insights on what brokers need to do to stay relevant and thrive in a rapidly changing market.
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories