Specialist Mortgages: Why More Borrowers Are Turning to Flexible Lenders in 2025

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The UK mortgage landscape is changing fast. More borrowers than ever are finding themselves outside the “traditional” lending box  from the self-employed and contract workers to those with a few missed payments or credit blips. A recent report from one of the lender’s highlighted just how many people are struggling to access mortgages through high-street lenders, and why the specialist mortgage market is now more important than ever.

 

  1. A financially divided nation

A recent report found that while 38% of UK adults say they’re better off than last year, the same proportion feel worse off.

Missed payments have increased from 24% to 38% in just a year, and more than half (56%) of UK adults are relying on unsecured borrowing to get by.

This financial strain means many borrowers are seeing their credit scores suffer  even when their income is stable.

 

  1. The confidence gap

Nearly 1 in 5 UK adults (18%) now say they don’t feel confident about securing a mortgage, rising to 29% among people with complex credit histories.

For many, a single rejection from a high-street bank is enough to make them believe homeownership is out of reach.

But that’s where the specialist market comes in  offering solutions that take a more rounded view of an applicant’s situation rather than relying purely on credit scores or automated systems.

 

  1. The self-employed struggle

The report shows that 4.4 million self-employed people in the UK still face challenges getting mortgages approved.

Despite 79% never missing a payment, they’re often seen as “too risky” by mainstream lenders because their income can fluctuate.
Yet with the help of a knowledgeable broker, 97% of self-employed borrowers said they valued the guidance, lender knowledge and tailored advice that brokers provide.

 

  1. Awareness remains low

Only 25% of people actually understand what a specialist lender is and how to access one.
That lack of awareness means many declined borrowers never get referred to a lender that could actually help them.

As brokers, this is where we can make a real difference by helping clients understand that a declined mortgage isn’t the end of the road.

 

  1. Moving forward

As economic pressures continue, specialist lenders are stepping up to support borrowers who don’t fit a “one-size-fits-all” model.

From complex incomes to credit blips, these lenders and the brokers who work with them  are helping people move from financial challenge to financial opportunity.

 

Final thought

If you’ve been turned down for a mortgage or think your situation is too complex, speak to a specialist broker. With access to lenders who take a more flexible, understanding approach, you might be closer to homeownership than you think.

👉 Get in touch with Oak Mortgages today to discuss your options with an expert.

 

 

*source taken from Shawbank Bank Home-A-Loan report 2025

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