Affordability for self-employed customers has dropped to its lowest level since records began, according to the latest Mortgage Broker Tools (MBT) Affordability Index.
The latest data, based on thousands of searches, reveals that only 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 is down from 75% in April 2022.
Data from MBT shows that affordability is being squeezed across the market, with only 71% of all enquiries being considered affordable in November 2022, down from a peak of 80% in January 2021.
Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “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. 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.
“MBT has recently been named the Best Affordability Tool Provider by Smart Money People for the sixth consecutive time. So, for brokers who want to ensure they are providing their clients with the best service, there is little doubt which technology platform they should use – MBT should be a broker’s first port of call.”
