More than half (55%) of Scottish adults with complex income who do not own their own home fear they may never get on the property ladder, according to research from Pepper Money.

One in five Scottish adults has a complex income, but 54% of this group do not own their own home, according to Pepper Money’s Scotland Specialist Lending Study, illustrating the barriers faced by borrowers whose finances do not fit standard mortgage criteria. Complex income can include self-employment, contracting, multiple income streams, irregular earnings or a history of adverse credit.

Among self-employed Scottish adults, 11% plan to buy a home to live in within the next year, suggesting there is a significant pool of potential buyers whose income may require more detailed assessment from lenders.

Adverse credit is another barrier, with more than one-third of Scottish adults having experienced it and 42% of those affected concerned about securing a mortgage. Missed payments are particularly common among younger adults, with 33% of 18- to 34-year-olds having missed a credit payment.

Overall, 47% of Scottish non-homeowners believe they will never be able to own their own home, rising to 55% among those with complex income. However, 5% of Scottish adults with complex income say they plan to purchase a home to live in within the next year.

Paul Adams, director of sales at Pepper Money, said: “Many people in Scotland want to own a home, but their financial circumstances do not always fit neatly into standard mortgage criteria.

“For customers who are self-employed, work as contractors, have multiple income streams, irregular earnings or a history of adverse credit, getting a mortgage can require a lender that looks beyond a standard tick-box approach."

The Cardiff-based specialist mortgage lender launched its First Charge mortgage proposition in Scotland in September, offering residential and buy-to-let (BTL) mortgage solutions through intermediaries. The proposition builds on the lender’s specialist lending and Second Charge mortgage business, with regional broker support and specialist underwriting.

The latest study was conducted by Opinium among 1,500 Scottish adults in August.

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