Small business owners in the UK often face unique challenges when trying to get approved for mortgages. Their irregular income patterns and complex financial situations can make traditional lenders hesitant. A new partnership aims to change that landscape.
Mastercard and digital mortgage broker Habito have announced a collaboration to make home ownership more accessible for small business entrepreneurs across the United Kingdom. The partnership will offer specialized mortgage support services tailored specifically to the needs of small business owners, sole traders, and self-employed professionals.
“Small business owners are the backbone of the UK economy, yet they face disproportionate barriers when applying for mortgages,” said Daniel Hegarty, founder and CEO of Habito. “Our data shows that self-employed applicants are rejected at nearly twice the rate of traditional borrowers, despite often having stable businesses and strong income potential.”
The program will provide participating small business owners with personalized mortgage assessments through Habito’s platform. These assessments will account for the unique financial circumstances that entrepreneurs typically face, including variable income streams, business assets, and profit retention strategies that might otherwise complicate mortgage applications.
Mastercard will integrate this offering into its small business benefits package, allowing eligible cardholders to access Habito’s specialized mortgage advisors at no additional cost. The service includes detailed mortgage eligibility reviews and customized application preparation to maximize approval chances.
Financial analysts have noted that traditional mortgage processes often disadvantage small business owners despite their economic contributions. According to the Federation of Small Businesses, the UK’s 5.5 million small businesses employ over 16 million people and generate about £2 trillion in combined turnover annually.
The timing of the partnership seems particularly strategic as the UK housing market continues its post-pandemic adjustment. Recent data from the Halifax House Price Index shows moderate price growth, creating potential opportunities for small business owners who have previously been sidelined from property ownership.
The partnership addresses several key pain points for entrepreneurial home buyers. For instance, many lenders typically require three years of business accounts, which excludes newer but successful ventures. Habito’s approach will consider alternative proof of business stability and income sustainability.
Kelly Devine, Mastercard’s UK and Ireland Division President, emphasized the broader economic benefits: “When small business owners can access fair mortgage terms, they gain financial stability that ultimately strengthens their businesses. This partnership reflects our commitment to inclusive financial solutions that support entrepreneurship across all sectors.”
The program will also offer educational resources on property financing specifically designed for business owners. These include guides on separating personal and business finances, optimizing tax arrangements for mortgage qualification, and understanding how business structures impact lending decisions.
Market experts have responded positively to the initiative. “This addresses a significant gap in the mortgage market,” commented Richard Donnell, Research Director at property market analysts Zoopla. “Traditional lending criteria often fail to account for the legitimate financial structures of small businesses, creating unnecessary barriers to property ownership.”
The partnership will initially launch in major UK metropolitan areas before expanding nationwide by mid-2025. Small business owners who participate will receive priority access to Habito’s specialized broker team, who have experience working with lenders that offer flexible underwriting for self-employed applicants.
Both companies emphasized that the partnership aims to create pathways to mortgage approval rather than altering fundamental lending criteria. The focus remains on helping small business owners properly document and present their financial situations to match traditional lender requirements.
Financial inclusion advocates have welcomed the move. “Access to housing finance remains a significant equity issue for entrepreneurs,” noted Catherine McGrath, Chief Executive of the Small Business Finance Federation. “Initiatives that recognize the legitimate differences in how business owners structure their finances help level the playing field.”
For UK small business owners interested in the program, registration will open next month through both the Mastercard small business portal and Habito’s website. The service will complement
