Rethink on risk needed as self-employed mortgage affordability drops 

“That's the absurdity of lending today. It is no secret that a large proportion of lending decisions are based on default statistics and automated processes, hence a preference for low-risk lending propositions.

“Unfortunately, the self-employed are historically seen as higher risk.”

In Hall’s view, there are steps lenders could take to make it easier for self-employed people to access mortgages and a move away from a “one-size-fits-all filtering system” would be a good first step. 

He added however that he does not “envy the task of separating the wheat from the chaff.”

jane.matthews@ft.com