Nearly half (45%) of non-PAYE workers have faced mortgage rejection, according to new research from The Mortgage Lender (TML).
The study, which surveyed 2,000 non-traditional workers, found that 9% of participants reported never having an application accepted.
More than a third faced mixed outcomes, with some applications approved and others declined.
Among self-employed workers, sole traders had the highest approval rate, with 65% receiving acceptance on all applications.
In contrast, workers on zero-hours contracts were the most likely to have all their applications declined (21%).
The research indicated 30% of respondents experienced rejection due to their profession being deemed too unsteady, while 28% attributed it to volatile income.
This was more prevalent among limited company directors (35%) and contractors (33%).
Traditional professions like lawyers and accountants also faced similar issues (32%).
Other reasons for mortgage rejection included low credit scores (27%), missed or late payments (24%), lack of necessary documentation (24%), and affordability issues (22%).
The occupations most likely to see rejections were technical or craft roles, such as mechanics and electricians, with 15% having never had an application approved.
In contrast, 49% of professionals in traditional roles had all their applications accepted.
Sara Palmer, distribution director at The Mortgage Lender, said: “It’s very clear that no matter the profession, those who are not ‘traditionally employed’, have a harder journey to access a mortgage.
“Because these individuals will often have an irregular or more complex income, many lenders may often view them as higher risk and therefore subject them to more stringent affordability assessments.
This is despite many of these individuals running successful businesses within the UK, that are highly regarded and provide necessary services.”
Palmer added: “Indeed, choosing these jobs and careers shouldn’t come with a penalty later on in life when you’re looking to get onto the housing ladder, or remortgage.
“It’s vital that self-employed individuals have the same opportunity to access a mortgage as those who are employed.
“At TML, we believe in lending for real life, and have therefore shaped our criteria to better support self-employed and other non-traditional workers to access the mortgages they need.”
