"Non-traditional paths to homeownership are increasingly becoming the norm and we know that brokers are keen for more flexible solutions to support clients who fall into this category. "
- Praven Subbramoney, chief lending officer at Nottingham Building Society
People across the UK are exploring major career changes or sacrifices to increase their chances of getting approved for a mortgage, according to a new survey conducted by Nottingham Building Society.
The research found that one in five people (22%) have started a side hustle in order to increase their income and boost their chances of getting a mortgage. A further 44% say they are considering trying to find a way to earn extra cash on top of their salary.
This pressure to boost incomes is even more prevalent amongst younger people. More than eight in ten under 35s say they would consider (55%) or have already started (30%) a side hustle to increase their chances of being approved by a mortgage lender.
Nottingham Building Society’s research also reveals that the UK’s entrepreneurial spirit is being dampened because of what borrowers perceive to be a ‘traditional’ mortgage market.
More than half (51%) of Brits think that working a traditional 9-5 job is viewed as a better way to demonstrate financial stability. 45% think if you don’t work a 9-5 job it will be harder to get a mortgage and 47% think that mortgage criteria is too skewed towards people doing full time 9-5 jobs.
And it seems some of their fears could be justified, with the Society’s research also showing that one in five people (21%) have already experienced problems getting a mortgage because of their career choice. 38% say they had to ‘jump through extra hoops’ to demonstrate they could afford the mortgage, and even then, 19% of those that do not work a traditional 9-5 were still turned down.
Praven Subbramoney, chief lending officer at Nottingham Building Society, said: “These findings reinforce an issue we are increasingly discussing with brokers – that traditional lending practices are not delivering for a large proportion of ordinary people across the UK today. We know that what was once considered the ‘normal’ route to homeownership via a 9-5 job simply isn’t how lots of people are living and working anymore.
“What really stands out is just how pronounced the trend is with younger people. Non-traditional paths to homeownership are increasingly becoming the norm and we know that brokers are keen for more flexible solutions to support clients who fall into this category. We are committed to supporting this cohort of borrowers to make the dream of homeownership something everyone can aspire to, regardless of where their income comes from.”
