New research ties Scottish affordability pessimism to a growing role for mortgage brokers
Almost half of Scottish adults who do not own their own home, 47%, believe they will never be able to buy one, according to research commissioned by specialist mortgage lender Pepper Money. The findings point to a gap between aspiration and affordability that brokers say is most acute among borrowers with self-employment income, variable earnings or a history of credit problems.
The pessimism deepens among non-homeowners with more complex incomes. Fifty-five percent of self-employed people, contractors and those with variable earnings in this group said they believe they will never own a home, the Pepper Money Scotland Specialist Lending Study found.
That pessimism lines up with independent data on affordability. The Scottish Government's Scottish Housing Market Review, published in July and drawing on UK Finance figures, found that home movers' mortgage payments took up 19.1% of income in the fourth quarter of 2025, the highest share since the 2008 financial crisis, before easing slightly to 19.0% in the first quarter of 2026. The same review found the house-price-to-income ratio for first-time buyers in Scotland rose from 3.0 to 3.1 over the year to the first quarter of 2026.
Pepper Money's study found 57% of Scottish adults believe house prices are increasing too quickly, while 39% said the cost of living has affected their ability to buy a home, and 30% pointed to rising household bills. A quarter of non-homeowners, 25%, said they do not feel financially ready to purchase a property, and 19% believe it will take more than five years before they can buy.
Even so, the study found sustained demand among people facing more complex financial circumstances. Seven percent of Scottish adults said they plan to buy a home within the next year, rising to 11% among self-employed people and 8% among those with adverse credit. More than one in ten adults overall, 11%, said they want to buy but do not believe it is possible, rising to 15% among those with adverse credit. For people who have experienced adverse credit, 42% said they are worried about securing a mortgage, and the same proportion said they are concerned about the application process itself.
Broker role highlighted
The study identifies an opening for mortgage brokers to reach customers who may assume homeownership is out of reach. Almost a third of Scottish adults, 31%, said they would want to use a mortgage broker for their next home purchase, rising to 41% among those with adverse credit, and to 61% among adverse-credit borrowers hoping to buy within 18 months.
Paul Adams, director of sales at Pepper Money, said, "these findings show a clear gap between the aspiration to own a home and what many people in Scotland feel is achievable."
The research was released alongside Pepper Money's launch of its First Charge mortgage proposition in Scotland, which extends its specialist lending into residential and buy-to-let ranges, including limited company and HMO options, according to Crowdfund Insider. Pepper Money already operates a second charge mortgage business in Scotland.
Ahead of the launch, Pepper Money appointed Michael Walsh as regional development manager for Scotland to lead broker engagement, Scottish Financial News reported. Walsh brings more than 25 years of experience in the intermediary mortgage market, including more than six years as a business development manager at OSB Group, according to the outlet.
Adams said, "we are pleased to be bringing Scottish brokers the breadth of our specialist lending proposition, backed by dedicated regional support and the high level of service for which Pepper Money is known."
