Outdated mortgage rules are making it harder for people with non-traditional jobs to buy a home, according to research from Nottingham Building Society.
The survey found that over one in five (22%) brokers had clients who faced extra checks because of their job or working pattern.
17% said lenders had refused clients outright due to income complexity.
16% of brokers said clients had run into mortgage problems before because of their job, while 14% noted that self-employed or freelance clients sometimes had no major issues.
Nearly one in five (18%) brokers said clients changed plans, like taking a dream job or starting a business, because they worried it would hurt their mortgage chances.
15% said clients worried that going self-employed would stop them getting on the housing ladder.
One in five (20%) reported clients needing help from family or friends to get a mortgage.
Additionally, 17% said clients who got tailored advice felt more confident about the process.
15% said lenders had shown flexibility with income or job status in some cases.
Aaron Shinwell, chief lending officer at Nottingham Building Society, said: “Careers in the UK are more varied than ever, but mortgage rules still favour the traditional 9 to 5.
“Our research shows that too many aspiring homeowners are holding back on life decisions – whether that’s taking a dream job, starting a business or pursuing a passion – because current lending models don’t account for the realities of modern work.
“At the same time, there are encouraging signs that some lenders are adapting, with brokers reporting cases where tailored support or greater flexibility has given clients new confidence.”
Shinwell added: “That balance of caution and innovation is key – and it underlines the importance of lenders continuing to evolve their products and criteria.
“Our priority is ensuring borrowers aren’t penalised for ambition or circumstance.
“By working with brokers and innovating responsibly, the sector can open the door to more people and make the mortgage market fit for the 21st century.”
