A report by The Mortgage Lender (TML) found that of those freelancers who said their employment status has had an adverse effect on their property-buying prospects, 19% said their fluctuating income has led them to delay their plans and 14% are worried they won’t be able to get a mortgage.
TML said the assumption of not being eligible for a mortgage has led to many considering changing their employment status to boost their chances of being approved.
Around 21% of freelancers have considered changing jobs to increase their income, a further 21% have reconsidered their employment status to move to a PAYE job and 19% have thought about taking on extra work.
A further 21% said they have worked on improving their credit score to boost their affordability for a mortgage.
Approximately 17% have thought about putting an additional person on the mortgage application to boost affordability, 17% are thinking of relying on a partner’s income to help obtain a mortgage and 18% are getting a guarantor for a mortgage.
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Looking at spending, 19% of freelancers have stopped their subscriptions and quit hobbies to reduce outgoings and up savings.
Around 18% said they have reduced socialising to save money, 16% have reduced or stopped their personal pension contributions, 14% have cancelled financial products like income protection or health insurance, and 14% have moved in with family or friends.
One in 10 have delayed plans to get married and or have a wedding and 12% have delayed plans to have children.
Sara Palmer, distribution director at TML, said: “It speaks volumes to how monumental the home buying process is when individuals, in this case freelancers, are willing to divert their careers, take on more work, cut back on leisure and life goals, in order to qualify for a mortgage to buy their home.
“Being a non-PAYE worker, these financial stresses can feel more acute, but employment status shouldn’t act as a barrier to homeownership. Everyone deserves equal opportunity to get on the property ladder and pursue their goals, which is where specialist lending becomes pivotal in the property market. We are dedicated to serving our customers, whether they’re a freelancer or work on a more traditional, employed basis.”
