New research from specialist lender The Mortgage Lender (TML) reveals that a large number of self-employed individuals, particularly sole traders, are being held back from homeownership by widespread sole trader mortgage misconceptions. According to TML’s study, 28% of sole traders have never even tried to get a mortgage, making them the least likely group within the self-employed sector to apply for home finance. The reason? A troubling combination of fear, misinformation, and financial instability is preventing thousands from exploring their sole trader mortgage options.
Why Sole Traders Are Avoiding Mortgages
When asked why they hadn’t applied for a sole trader mortgage, sole traders cited the following concerns:
- 26% believe they wouldn’t be approved for a mortgage
- 17% have heard it’s harder for the self-employed
- 10% find the process too daunting
- 24% said fluctuating income caused them to delay homeownership
- 18% are worried their employment status would lead to rejection
TML’s findings also show that 38% of sole traders feel their employment status has negatively affected their property ambitions, with 15% even considering abandoning their plans entirely.
The Truth About Sole Trader Mortgages
As someone who works closely with self-employed clients, I see this pattern all too often. Many brilliant, financially responsible business owners disqualify themselves before they’ve even spoken to a mortgage expert. This is a huge problem, and one we’re committed to solving at Oportfolio Mortgages. The reality is that securing a sole trader mortgage is absolutely possible. Yes, lenders need to assess income a bit differently, but many now offer flexible underwriting criteria specifically designed for the self-employed. In fact, more mortgage providers are now recognising the economic contribution of sole traders and are adjusting their offerings accordingly.
Optimism on the Horizon
Despite the challenges, the outlook isn’t all doom and gloom. Encouragingly, 68% of sole traders remain optimistic about achieving their property goals in the next five years.
Sara Palmer, Distribution Director at The Mortgage Lender, commented:
“While the hurdles to homeownership can be especially high for sole traders, it’s encouraging to see that so many of this cohort are still keen to pursue their homeownership plans. This is a testament to their resilience. Sole traders contribute significantly to our economy and should not be penalised for how their income is generated.”
At Oportfolio Mortgages, we wholeheartedly agree. We believe that sole trader mortgage solutions must reflect the real-world circumstances of those who run their own businesses. These individuals are the backbone of the UK economy, and deserve fair access to home financing.
Don’t Let Mortgage Myths Hold You Back
The message is clear: if you’re a sole trader, a mortgage is not out of reach. The key is working with a broker who understands the nuances of self-employed lending. We’ve helped hundreds of sole traders navigate the mortgage process, and we know how to present your income in the best possible light. If you’re self-employed and want expert advice on your sole trader mortgage options, contact Oportfolio Mortgages today. We’ll guide you through the process, help you understand your eligibility, and match you with the right lenders who are open to self-employed applications.
