The number of mortgage enquiries from self-employed applicants that failed to find one affordable option rocketed by nearly a third following the Mini Budget last September, according to the latest data from Mortgage Broker Tools (MBT).
Analysis of real cases processed through the MBT research software shows that, prior to the Mini Budget in September 2022, 28% of mortgage enquiries from self-employed applicants were unable to achieve the loan size requested as they were considered unaffordable.
Following the Mini Budget, however, this number rocketed by nearly a third (32%) to 37% of self-employed mortgage enquiries that were considered to be unaffordable.
However, in recent weeks, competition has returned to the market, with lenders cutting rates and offering more achievable stress testing.
Tanya Toumadj, CEO at Mortgage Broker Tools, said: “As we saw from the Mini Budget last autumn, fiscal policy statements can have a significant impact on financial markets, interest rates and ultimately the accessibility of mortgage finance, so we’ll all be watching closely to see what the Chancellor has to say at the Dispatch Box.
“It’s unlikely that this Budget announcement will have quite such a dramatic impact on mortgage affordability, but even small changes can have a potentially huge impact on the prospects for individual clients, particularly in the current uncertain economic environment. For brokers, the one constant is that thorough market-wide research is the key to securing the most appropriate lender and mortgage to meet the requirements of their clients.
“This is practically impossible without the use of research software to analyse the available options and MBT Affordability continues to provide the most accurate software available in the market.”