More than half of Scottish non-homeowners with complex incomes fear they will never make it onto the property ladder, new research reveals.
Pepper Money’s Scotland Specialist Lending Study finds 55% of those with complex incomes who do not currently own a property believe they may never be able to do so.
That compares with 47% of Scottish non-homeowners overall who believe homeownership will remain beyond their reach.
One in five Scottish adults has what Pepper defines as a complex income, including people who are self-employed, contractors or have multiple or irregular income streams.
HOMEOWNERSHIP BARRIERS
More than half (54%) of Scots with complex incomes do not currently own their home, according to the research.
Despite the concerns, there remains a pool of prospective buyers among people whose earnings may not fit traditional lending criteria.
Some 11% of self-employed Scottish adults say they intend to buy a home to live in during the next year, while 5% of all adults with complex incomes have similar plans.
Paul Adams, Director of Sales at Pepper Money, says: “Many people in Scotland want to own a home, but their financial circumstances do not always fit neatly into standard mortgage criteria.
“For customers who are self-employed, work as contractors, have multiple income streams, irregular earnings or a history of adverse credit, getting a mortgage can require a lender that looks beyond a standard tick-box approach.”
CREDIT PRESSURES
Credit history is another potential barrier, with more than a third of Scottish adults having experienced adverse credit.
Among those with adverse credit, 42% are concerned about their ability to secure a mortgage.
The research also finds missed payments are particularly prevalent among younger adults, with 33% of Scots aged 18 to 34 having missed a credit payment.
Pepper Money launched its first charge mortgage proposition in Scotland this month, offering residential and buy-to-let mortgages through intermediaries.
