More than half of Scottish adults with complex incomes who do not own a home fear they may never get on the property ladder, according to research from Pepper Money.
The lender’s Scotland Specialist Lending Study found that 55% of non-homeowners with complex incomes believe they may never own a property, compared with 47% of Scottish non-homeowners overall.
Pepper Money said one in five Scottish adults has a complex income, while 54% of people in this group do not currently own their home.
The category includes borrowers who are self-employed, work as contractors, receive income from several sources or have irregular earnings, as well as some customers with a history of adverse credit.
SELF-EMPLOYED DEMAND
Despite concerns about affordability and access to mortgages, the research suggests there remains demand among borrowers whose finances may fall outside standard lending criteria.
Some 11% of self-employed Scottish adults said they intend to buy a home to live in during the next year. Across all Scottish adults with complex incomes, 5% said they planned to make a residential purchase over the same period.
Credit history is another potential barrier. More than one-third of Scottish adults surveyed had experienced adverse credit, while 42% of those affected said they were concerned about their ability to secure a mortgage.
Younger adults were particularly likely to have missed payments, with 33% of those aged 18 to 34 saying they had missed a credit payment.
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.
“That is where Pepper Money can help. Our specialist underwriting, combined with the expertise of brokers, means we can assess individual circumstances more carefully and support customers who may need a more flexible route to home ownership following the recent launch of our First Charge proposition in Scotland.”
