Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Self-Employed Mortgage Applicants Face Fewer Lender Options

Self-employed mortgage applicants have around a third fewer lenders to choose from compared to employed borrowers, according to analysis by Mortgage Broker Tools (MBT). The data also shows that self-employed applicants are 42% more likely than employed borrowers to be rejected by every lender.

MBT found that self-employed applicants, including limited company directors and contractors, had an average of 12 eligible lenders available, while employed borrowers had 19. Self-employed applicants made up about 12% of all mortgage applications processed through MBT’s platform.

The analysis also revealed that almost one in five self-employed applicants could not find a single eligible lender, compared to around one in eight employed borrowers. The likelihood of being rejected by every lender was 42% higher for self-employed applicants.

The gap in rejection rates between self-employed and employed applicants has narrowed only slightly over the past year. In June 2025, 22% of self-employed applications were rejected by every lender, compared to 16% for employed applications. While affordability has improved in the wider mortgage market, self-employed borrowers have not seen the same level of benefit.

These findings are relevant for UK letting agents and inventory clerks, as they highlight ongoing challenges for self-employed tenants and buyers in securing mortgages. The reduced lender choice and higher rejection rates may impact the ability of self-employed individuals to move or purchase property, which could affect rental demand and property turnover.