Nottingham Building Society report highlights mortgage lender delays

A report by Nottingham Building Society, titled ‘Doorstep Divide’, reveals that 88% of mortgage brokers believe lenders are too slow to adapt to the changing needs of borrowers. The research indicates that 68% of brokers expect borrowers with non-standard financial circumstances to become the new norm, with 31% stating this shift has already occurred and 49% expecting it within the next year.

Key barriers identified include initial affordability assessments and documentation requirements, each cited by 19% of brokers. Additionally, 18% noted that inconsistent evidence requirements between different lenders act as a significant obstacle.

Consumer sentiment mirrors these findings. Approximately 27% of adults reported delaying, pausing, or abandoning mortgage applications due to their income type, a figure that rises to 49% among the self-employed. Many consumers feel that those with irregular or non-traditional incomes are judged more harshly than salaried employees, with 66% believing variable earnings are treated as higher risk.