The Intermediary – October 2025 - Flipbook - Page 17
RESIDENTIAL
Opinion
Reflecting the
changing world
of work
T
he world of work has
changed dramatically
in recent years. From
the growth of selfemployment and
freelancing to the rise
of portfolio careers and side hustles,
Britain’s workforce is more diverse
and flexible than ever. Various studies
estimate that between 19% and 30% of
working adults in the UK now have a
side hustle.
I recently witnessed an example
of this, when I sourced a young
electrician to replace a fuse board
at home, who had built large social
media presence. Much of his income
was now through his social media
sites and creating content for other
businesses.
Examples like this are increasing,
yet standard affordability models
and lending rules continue to favour
the traditional nine-to-five worker,
leaving many aspiring homeowners in
cases such as this at a disadvantage.
Our latest broker survey highlights
the issue. More than one in five
brokers (22%) say that they have
clients with non-standard incomes
who are having to jump through
additional hoops to prove affordability,
because of their career choice or
working paern. A further 18% of
brokers say clients have delayed or
abandoned dream career plans over
fears it would harm their chances of
securing a mortgage.
We also found that 16% brokers
report clients who have experienced
problems with mortgage applications
because of their career path, and
17% say lenders have turned clients
down outright because of income
complexity.
While it is worth recognising
that not all brokers report seeing
these cases regularly, a significant
AARON SHINWELL
is chief lending officer at
Nottingham Building Society
enough proportion are – and they
have real knock-on effects. Almost
one in five brokers report clients
who held back from starting a
business or pursuing a passion project
for fear it would jeopardise their
homeownership prospects. A further
15% say clients worry about the risks
of entrepreneurship when it comes to
accessing the housing market.
This comes at a time when, for
those determined to get on the ladder,
support from friends or family
remains crucial. A study from earlier
this year found that 57% of firsttime buyers used the so-called ‘Bank
of Mum and Dad’ in 2023, up from
47% in 2022.
Taken together, I believe this
highlights the potential risk of
inequality in homeownership. Those
without access to family wealth or
without the security of a conventional
job contract could be le with fewer
options, even when they have the
means to meet monthly repayments,
as many are renting a home today.
That said, it is not all bad news.
Encouragingly, some brokers
point to cases where lenders have
demonstrated flexibility and
innovation. One in six (17%) say
clients who received tailored advice
felt more confident about their
mortgage journey, while 15% report
situations where lenders showed
greater understanding of irregular
income or non-traditional careers.
These examples highlight the
potential of a more balanced approach
– one that recognises the realities of
modern work without compromising
on responsible lending.
What needs to change?
The first step is acknowledging that
income diversity is here to stay. Selfemployment, freelance contracts, side
People are having to
consider their career and
the potential impact on
[their buying] ambitions”
hustles and entrepreneurial ventures
are not exceptions; they are part of the
mainstream economy. Lenders must
adapt their criteria and product design
accordingly.
This might involve more nuanced
affordability checks, greater flexibility
in recognising multiple income
streams or using technology to
streamline complex applications.
To get this right, it is important
that lenders collaborate with
brokers, drawing on their day-today
experiences with clients, to ensure
products meet the needs of modern
borrowers.
Helping people onto the housing
ladder is a significant life moment,
one which should enable borrowers
to pursue their dream careers, not
hinder them.
What is clear from our ongoing
dialogue with our broker network,
borne out in our research, is that too
many people are having to consider
their career and the potential impact
on their homeownership ambitions.
A mortgage market that embraces
flexibility and innovation will not
only open the door for more buyers,
but will also support the economic
and social contributions of a changing
workforce. By working with brokers
and adopting a forward-looking
approach, lenders can help create a
system that works for everyone. ●
October 2025 | The Intermediary
15
