Our 2025/26 Specialist Lending Study found that 76% of people believe self-employment makes it harder to get a mortgage  because of how their income is structured.

This perception, along with the number of self-employed customers declined by the high street, can create a significant barrier, leading many to believe homeownership is out of reach. This isn’t the reality.

Many self-employed customers choose to be tax-efficient, taking a smaller salary and drawing dividends instead. While this can work financially, it may not always present the strongest case to a high street lender.

A more flexible approach can make all the difference.

Annual turnover looks great on paper, but their drawn income is lower, failing to reflect the customer’s actual affordability.

Many high street lenders rely on average income over several years. We can use either the latest year’s figures or just one year’s trading, which can support a more accurate view of affordability and potentially increase borrowing capability.

In this scenario, the customer would fit on our Pepper 24 Light range, as they registered a default 2 years ago but have never had a CCJ.

At Pepper, we support your just-off-high-street customers with inclusive criteria and human underwriting. Here’s how we can help you place more self-employed cases:

  • Minimum income of £18,000 per annum, with 100% of secondary income accepted
  • No credit scoring – affordability is based on the full picture
  • Salary and share of net profits accepted if the customer owns at least 50% of their business. Or salary and dividends if they own 25% or more
  • No debt-to-income ratio – unsecured missed payments won’t affect product tier
  • No value limit on CCJs and defaults (no need for them to be satisfied)
  • Additional remuneration accepted, including use of home office, pension contributions, and car allowance
  • Capital raising remortgages for any legal purpose up to maximum LTVs

 

For additional information and support, get in touch with your BDM to discuss our Just-Off-High-Street range, or discover more on our website.