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Lenders restricting mortgage lending for certain workers?

Journalist: Jane Matthews, FTAdviser

ended 19. January 2023

Hi all, 

I've heard anecdotally that some lenders are tightening up their lending to borrowers who work in certain sectors like tech because of fears over lay-offs. Is this something you are seeing? 

Would be interested to hear more if so.

Thanks, 
Jane 

3 responses from the Newspage community

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I have to admit, this is something I haven’t come across
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We've not seen any first-hand experience of lenders being concerned about whole sectors of employment and the risk of redundancies. However, we have previously seen instances where a large firm has announced they plan to make redundancies and lenders looking for written confirmation that the customer's job role isn't at risk.
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I would find it surprising if lenders were restricting borrowing to certain sectors of workers, mainly because doing so would be exceedingly difficult within the systems that most run - they simply do not have the granular detail at the credit score stage to enable them to automatically restrict lending to certain occupations. It is however possible for lenders to restrict lending for certain employment types (self-employed, employed, contract worker, etc), as opposed to specific occupations or sectors, we do often see self-employed borrowers restricted by lenders when compared to employed applicants.