Nearly 3 in 5 (57%) freelancers say their employment status has negatively affected their ambitions to buy a property, according to research from The Mortgage Lender (TML).
Of those, 19% of freelancers say that their fluctuating income has meant they’ve had to push back their property ownership ambitions, while 14% are worried they won't be able to get a mortgage.
Assumptions of not being able to get a mortgage has led many to consider what they need to do in order to increase their chances of getting a mortgage, even if it means changing their career paths.
One in five (21%) freelancers have considered changing jobs to earn more while another 21% have reconsidered their employment status to move to a PAYE job.
19% have thought about taking on extra work to increase their take home pay and a further one in five (21%) have also worked on improving their credit score.
Other considerations freelancers have had to boost their chances of getting a mortgage include putting an additional person on the mortgage application to improve their eligibility (17%), relying on a partner’s income to help obtain a mortgage (17%), and getting a guarantor for the mortgage (18%).
This has also extended into individual’s social lives and spending habits. 19% have stopped their subscriptions to reduce their outgoings and the same percentage have quit their hobbies. 18% reduced their socialising to save money, 16% reduced or stopped their personal pensions contributions, 14% cancelled financial products like income protection or health insurance, and 14% moved in with friends or family.
A number of freelancers are even putting on hold big life plans to prioritise their mortgage. One in ten (11%) have delayed plans to get married and/or having a wedding while 12% have delayed plans to have children.
Sara Palmer, distribution director at The Mortgage Lender (TML), commented: “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.”
