October 5 2016.

Some 12 per cent of self-employed workers have been turned down for a first-time mortgage or remortgage, underling the problems of proving income and affordability for customers who are not full-time employees, according to a survey by the Nottingham Building Society.

The Nottingham’s study highlights how it is not down to having a lower income; nearly half (48 per cent) of the self-employed workers questioned earn about the same or more than in their previous job. Around 26 per cent say they are earning more and the overwhelming majority had previously been in full-time employment.

The Financial Conduct Authority’s Responsible Lending Review into the workings of the mortgage market in May concluded there was no evidence that mortgage companies were being prevented from lending to self-employed borrowers by new affordability rules and that the volume of loans had not fallen.

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