Self-employed mortgage applicants have access to more than a third fewer eligible lenders than employed borrowers, latest analysis from Mortgage Broker Tools reveals.
MBT data for June 2026 showed that self-employed applicants could choose from an average of 12 eligible lenders, compared with 19 for employed borrowers.
Self-employed workers, limited company directors and contractors accounted for around 12% of the mortgage applications processed through the MBT platform during the month.
Almost one in five self-employed cases (17%) failed to find an eligible lender on the panel, compared with 12% of employed applicants. This made self-employed borrowers approximately 42% more likely to receive no eligible result.
AFFORDABILITY OPTIONS
Although overall affordability options have improved over the past year, MBT said the gap between the two groups had barely changed.
In June 2025, 22% of self-employed applications received no eligible result, compared with 16% of cases involving employed borrowers.
The findings come as the Financial Conduct Authority consults on proposed mortgage rule changes intended to give lenders greater flexibility when assessing variable and irregular income.
The regulator’s CP26/18 Mortgage Rule Review proposes reducing barriers to flexible repayments for people with variable incomes, including the self-employed.
It would also encourage lenders to consider an applicant’s full and current circumstances while retaining responsible lending and affordability requirements. The consultation closes on 28 July.
“Fewer options doesn’t mean no options.”
Tanya Toumadj (main picture), chief executive officer at Mortgage Broker Tools, said: “Self-employed people are a fair share of this market, not a niche part of it. Our data shows they’re less likely to be offered a loan at all, and when they are, their choice of lenders is smaller.
“Fewer options doesn’t mean no options, but it does mean accurate research across a wide range of lenders becomes even more necessary to find the right one for that borrower.
“It’ll be interesting to see what comes out of the FCA’s consultation.”
