37% of self-employed mortgages considered unaffordable following Mini Budget

The number of mortgage enquiries from self-employed applicants that failed to find a single affordable option rocketed by nearly a third following last Autumn's Mini Budget, according to the latest data from Mortgage Broker Tools (MBT).

Analysis of 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 to 37% of self-employed mortgage enquiries.

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"