Self-employed borrowers are finding it difficult to get mortgages, according to research by the Nottingham Building Society.

The firm’s study found that 12% of self-employed workers it surveyed have been turned down for a first-time mortgage or remortgage. 

It says these findings underline the affordability problems for customers who are not in full-time employment.

Almost one in eight self-employed workers have been turned down for lending, despite 48% of those surveyed saying they earn the same or more now than in their previous position.

The Nottingham also carried out research among brokers, finding that 86% feel there should be more mortgage choice for the self-employed.

Almost a quarter of brokers said they expect applications from self-employed workers to increase this year, while 33% said they experienced a rise in self-employed borrower applications in 2015.

“Self-employment is growing rapidly and being your own boss should not mean you cannot successfully apply for a mortgage,” argues Ian Gibbons, senior mortgage broking manager at The Nottingham.

“Our study shows self-employment can still be an issue when applying for a mortgage.”

“Lenders are responding with new mortgage deals for self-employed customers being launched regularly so there are options available and demand,” he says.