Mortgage affordability for self-employed customers has dropped to its lowest level on record, according to the latest Mortgage Broker Tools (MBT) Affordability Index.
The data, based on thousands of broker searches, revealed that just 65% of self-employed mortgage enquiries were considered affordable at the end of 2022.
This is the lowest level since MBT started recording the data in 2020 and marks a fall from 75% in April 2022.
Data from MBT has indicated that affordability is being squeezed across the whole market, with only 71% of all enquiries being considered affordable in November 2022, down from a peak of 80% in January 2021.
“With rising rates and increased living costs it’s unsurprising that mortgage affordability is being squeezed, and it’s particularly difficult for self-employed borrowers to secure the loan size they want at the moment,” said Tanya Toumadj, CEO at Mortgage Broker Tools.
“In this environment, brokers can’t take affordability for granted and researching the best options for customers to achieve their desired loan sizes is more important than ever before. Fortunately, it’s also never been easier for brokers to carry out that research if they make use of the technology available to them.”
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