In our market, the term ‘non-standard borrower is often used to describe applicants whose financial profiles don’t conform to traditional expectations – freelancers, the self-employed, those with fluctuating earnings, or people supplementing salaried income with other jobs.
But in 2025, this classification increasingly needs expansion, especially as these borrowers are no longer outliers, they’re an emerging and growing cohort, and mortgage lending – and us as lenders – have to catch up with that reality.
The conventional model, where borrowers are assessed based on a single, predictable payslip, no longer aligns with how many people earn, save, and manage their finances across different life stages.
The rise of the gig economy, a swelling cohort of mid-life career switchers, and later-life borrowers relying on investments or pension drawdowns have all contributed to a dramatically more complex borrowing population. It’s not just the workplace that’s changed, it’s the shape of the financial journey itself.
For instance, one in five UK mortgages is now held by someone over the age of 55. This is a significant figure and reveals how many borrowers are either remortgaging, buying for later-life living, or supporting family members with intergenerational finance.
And while these individuals may not have conventional employment income, they remain financially active – often supported by rental yields, part-time consultancy, or assets.
UNHELPFUL AFFORDABILITY ASSESSMENTS
In fact, many are among the most financially–resilient borrowers, with long-established credit histories and diversified income. Yet standard affordability assessments can work against them.
We’re also witnessing a broader cultural shift in how people approach income. According to Aviva, more than one in four UK adults now relies on multiple income streams. That figure rises to nearly 40% for those aged 25 to 40.
These are not fringe behaviours; they reflect a conscious and strategic diversification of income that includes freelancing, seasonal work, online selling, and monetised hobbies.
Many of these individuals are actively managing their income in ways that improve financial stability – but are often penalised for it in the mortgage process.
What’s more, creditworthiness is not the issue here. Experian data shows that 20% of mortgage applicants turned away by the larger, mainstream lenders had credit scores considered ‘good’ or ‘excellent’. Their applications were rejected not because they posed a higher risk, but because the nature of their income didn’t fit a box.
OUTDATED IDEAS OF NORMALITY
This is a systemic failure – not of the borrower, but of those lenders’ lending framework still being too reliant on outdated templates of what financial ‘normality’ looks like.
All of this has led to a notable rise in the use of more specialised mortgage products for unique financial circumstances, which undoubtedly require individual assessment and manual underwriting.
UK Finance again recently reported that specialist lending now accounts for 16% of the residential mortgage market, up from 11% just five years ago. These products are not ‘second chance’ solutions – they are intelligent, flexible offerings that are often better aligned with the financial realities of modern borrowers.
A key reason for this growth is the rise in first-time buyer age. The average first-time buyer in the UK is now 33.5 years old. That’s not simply a sign of affordability pressures; it also means today’s buyer has likely spent a decade or more working in environments where income fluidity, career shifts, and mixed earnings are the norm.
They may have had time to build up savings, improve their credit, and manage multiple income sources but still face friction from lenders who struggle to assess anything outside of standard PAYE.
TELL THE WHOLE STORY
So where does that leave the adviser? Increasingly, in the role of interpreter and advocate. Advisers must now tell the full story of a client’s income – layered, evolving, sometimes unconventional – and ensure lenders are equipped to listen.
It’s not about bending the rules, but about applying better judgement to real-life affordability. Products like our own Flex Plus, which combine flexible criteria with individual case assessment, are vital in providing the solutions required and becoming vital avenues for navigating this complexity.
We as a lender accept that people’s financial journeys are now episodic, not linear. Borrowers transition through multiple income phases: salaried to self-employed, single to joint income, low to high earning power, and back again.
A truly responsive mortgage lender doesn’t just recognise that, it builds product solutions for it.
Borrower needs are evolving. So too must our definition of what makes someone ‘mortgageable’. If lenders and advisers can embrace the full spectrum of income types and life stages, they won’t just unlock more lending, they’ll deliver a service that finally reflects the way people really live and earn today.
Laura Sneddon is head of mortgage sales & distribution at Hinckley & Rugby for Intermediaries
Links:
UK Finance, “Household Finance Review Q1 2025”
https://www.thetimes.co.uk/article/share-of-high-loan-to-value-mortgages-rises-to-highest-since-2008-7qtkpn52l
Aviva, “HY2024 Results Announcement”
https://www.aviva.com/newsroom/news-releases/2024/08/HY2024-results-announcement
Experian, “How Credit Scores for Mortgage Borrowers Changed”
https://www.experian.com/blogs/ask-experian/how-credit-scores-for-mortgage-borrowers-changed
UK Finance, “Household Finance Review Q4 2024”
https://www.ukfinance.org.uk/news-and-insight/press-release/household-finance-review-q4-2024
Finder.com, “First-Time Buyer Statistics 2025”
https://www.finder.com/uk/mortgages/first-time-buyer-statistics
