The rise of the bold borrower: Why the mortgage market must adapt to modern income

A changing world of work 

The UK’s self-employed workforce plays a vital role in the economy. Yet securing a mortgage can still be more challenging for people whose income comes from running a business, contracting or combining several jobs. 

As the world of work changes, borrowers are finding new ways to pursue their financial goals. The Mortgage Lender’s 2025 Home A-Loan report found that 17% of adults have taken on a second job or started a side hustle. Despite current pressures, 49% remain optimistic about their long-term financial future. 

These are today’s “bold borrowers”: resourceful people creating opportunities and building towards homeownership on their own terms. 

Making sense of modern income 

For some, that means freelancing alongside a full-time job. Others may be contractors, business owners or earning from several sources. These working patterns can offer flexibility and extra earning potential, but they may not fit the assumptions behind traditional mortgage assessments, which often favour a single employer and a predictable monthly salary. 

That can make it harder for borrowers to show the full picture of their finances. Income may vary throughout the year or come from a mix of employed and self-employed work. Those details can add complexity to an application, even when a borrower has the means to manage a mortgage. 

Where specialist lending can help 

The report highlights the wider challenges facing some applicants. While the overall mortgage approval rate is 71%, it falls to 54% for applicants with impaired credit histories. Among first-time buyers, the figure is 46%. 

Awareness is another part of the issue. Just 25% of applicants are familiar with the role specialist lenders can play, and 34% of borrowers who could have benefited from specialist support were not referred to one. 

For brokers, understanding a client’s full income picture can reveal options that a standard assessment might miss. Specialist lenders have developed more flexible ways to consider affordability and modern working patterns, including income from self-employment and multiple sources. 

Assessing the whole picture 

At The Mortgage Lender, our approach includes considering the latest year’s trading figures, supporting applicants with as little as 12 months’ trading history and taking a broader view of income sources. These are examples of how lending can adapt to the way people work today. 

The borrowers of today may not follow conventional career paths, but their ambitions are just as valid. By recognising how modern income works and helping clients find the right route, brokers and lenders can support more people working towards homeownership. 

The dream hasn’t disappeared. Today’s bold borrowers are finding new ways to make it happen. 

Source

The Mortgage Lender Home A-Loan report, 2025. Research conducted on behalf of Shawbrook Bank by Pegasus Insight among a nationally representative sample of 2,010 UK adults aged 18+, including 470 mortgagees, 391 private renters and 688 potential first-time buyers. Fieldwork took place 12–16 May 2025.