Still Locked Out? Self-Employed Workers Still Struggle for Mortgage Access

• 79% of self-employed workers never miss payments, yet many are still penalised in mortgage applications
• 34% of mortgage rejections for the self-employed are due to credit scores being deemed insufficient
• However, mortgage rejections appear to be easing for this group – dropping from 45% to 24% in the last year

Despite nearly eight in ten (79%) self-employed workers never missing a payment on their financial commitments, many are still routinely penalised in mortgage applications.

That’s according to latest research from Shawbook, which uncovers the ongoing challenges faced by self-employed individuals – a growing and essential segment of the UK workforce – in their pursuit of homeownership.

Creditworthy, but still declined

Shawbrook’s Home A-Loan report, which explores specialist lending and the challenges facing current and prospective buyers, finds that among self-employed individuals that have applied for a mortgage, one in three (34%) say they were rejected due to a credit score that wasn’t deemed good enough. A further 30% cited their income being considered too volatile, and 28% said their profession was considered too irregular or unsteady by lenders.

There is, however, some cause for optimism. The number of self-employed applicants experiencing mortgage rejection has dropped significantly – with less than a quarter (24%) saying they’ve had at least one mortgage application declined, compared to 45% last year. While this shows lenders may be slowly adapting, significant barriers remain.

Self-employed delay life goals to buy a home

Beyond mortgage struggles, the self-employed cite a variety of factors that are blockers to achieving their homeownership goals in the next five years. For those looking to buy their first home in particular, the top barriers include house prices (50%), general affordability and cost of living (46%), raising a large enough deposit (38%), and their self-employed accounts (38%).

Shawbrook’s research also highlights the personal and financial sacrifices self-employed workers are making in order to get onto the property ladder:

• 29% have stayed renting longer than they wanted to
• 24% have cut back on their social life
• 14% have held back on expanding their business
• 21% have delayed other major life goals

Steve Griffiths, Commercial Director for Retail Mortgages at Shawbrook, said: “Our research clearly highlights the ongoing disconnect between the realities faced by self-employed borrowers and the rigid lending criteria they encounter. While it’s encouraging to see mortgage rejection rates falling, the fact remains that millions of creditworthy self-employed individuals are still being excluded from the property market.

“The self-employed are a vital part of the UK economy, and it’s essential that their unique financial profiles are properly recognised. With brokers having greater clarity on how specialist lenders can offer tailored solutions, particularly when it comes to understanding annual accounts and cashflow for business owners, self-employed borrowers are better able to navigate the mortgage market with confidence.”

About the Report

Home A-loan: A 2025 Specialist Lending Report combines national research with insight from Shawbrook’s mortgage brands, The Mortgage Lender (TML) and Bluestone Mortgages (BML). It explores the disconnect between borrowers’ financial reality and the way mortgage eligibility is assessed – and the role of specialist lenders and brokers in bridging that gap.

Methodology 

Research undertaken on behalf of Shawbrook Bank by Pegasus Insight amongst a nationally representative of 2010 UK adults aged 18+, including 470 mortgagees and 391 private renters. Fieldwork completed between 12.05.2025 – 16.05.2025.