Gen H has expanded its lending criteria to allow non-PAYE applicants to access mortgages at up to 95% loan-to-value, widening high-LTV options for self-employed workers and contractors with smaller deposits.

The lender estimates that around one in 10 aspiring homeowners who are self-employed or working on a contract basis have less than a 10% deposit, leaving many effectively excluded from the housing market under traditional affordability and income assessment models.

While self-employed workers and contractors contribute significantly to the UK economy, they are often underserved by mortgage lenders due to the perceived complexity and variability of their income.

CHANGING WORKFORCE

Sara Palmer (main picture), sales and distribution director at Gen H, said: “The shape of our workforce is changing, but the desire for homeownership is not.

“Self-employed and contract workers should have the same right to access homeownership as anyone else – even with small deposits – but outdated ideas about the reliability of that income means too many are still locked out.

“We have approached this exciting expansion of our policy as we do all areas of our criteria: sensibly, and with prudence, but with a view to expanding access, not maintaining the status quo.”

EMPLOYMENT STATUS WOES

Mortgage Soup revealed last September how research by Afin Bank highlighted the scale of the issue, with 38% of self-employed respondents saying their employment status had prevented them from buying a home.

A further 23% cited unpredictable or fluctuating income as a key barrier to securing a mortgage.

Gen H said the latest policy change builds on its existing reputation for supporting non-PAYE applicants and reflects a more nuanced view of income stability, focusing on consistency and track record rather than rigid employment categories.

SUSTAINABLE INCOME

The lender aims to recognise variable income patterns that are sustainable over time, rather than treating them as inherently higher risk.

The move comes against the backdrop of a steadily growing self-employed workforce. The number of self-employed workers in the UK increased by nearly 30% between 2000 and 2025, with further growth expected as more people seek flexible working arrangements and technology continues to support remote and gig-based employment.

By extending 95% LTV lending to non-PAYE borrowers, Gen H is seeking to reduce deposit barriers and broaden access to homeownership for a segment of the market that has historically faced tighter restrictions.