The number of self-employed individuals who were unable to secure affordable mortgages surged by nearly a third after the mini-Budget last September, according to new data from Mortgage Broker Tools (MBT).
Analysis of real cases processed through the MBT research software revealed that, prior to the Mini Budget, 28% of mortgage enquiries from self-employed applicants were unable to obtain the requested loan size as it was deemed unaffordable.
This figure increased significantly after the mini-Budget, with 37% of self-employed mortgage enquiries considered unaffordable.
However, in recent weeks, competition has returned to the market, with lenders cutting rates and offering more achievable stress testing.
Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, noted that the mini-Budget had a significant impact on financial markets, interest rates and ultimately the accessibility of mortgage finance.
Toumadj added: “It’s unlikely that this Budget announcement will have quite such a dramatic impact on mortgage affordability, but even small changes can have a potentially huge impact on the prospects for individual clients, particularly in the current uncertain economic environment.
“For brokers, the one constant is that thorough market-wide research is the key to securing the most appropriate lender and mortgage to meet the requirements of their clients.
“This is practically impossible without the use of research software to analyse the available options and MBT Affordability continues to provide the most accurate software available in the market.”
