37% of Gig Economy workers - those who earn income through temporary contracts - have plans to buy their first home, according to research from The Mortgage Lender (TML). However, 7 in 10 feel that their employment status has negatively impacted their ability to get a mortgage.
Of the Gig Economy Workers that have tried to apply for a mortgage in the past 63% have been rejected at least once.
36% have said they have been rejected because their profession was considered unsteady or income too volatile (29%)
Many also said their credit score had been too low (38%) and 33% had missed a payment in the past. Of the 70% who felt that their employment status had impacted their ambitions to buy, 21% said they wou ld have to consider abandoning their ambitions to own property. 15% said they’d have to rent longer than planned and the same percentage worried they would never get a mortgage.
Motivated to achieve their goals, Gig Economy workers have already made a number of sacrifices in order to afford their home:
- 31% said they had to cut down on their social life
- 30% said they paid more expensive rent to live where they wanted because they couldn’t buy in that area
- 27% lived in an area that they didn’t want to
- 25% delayed starting a family
- 21% delayed their property plans
- 20% delayed other life goals
Despite the challenges, the majority of Gig Economy workers have remained optimistic:
- 86% of workers are optimistic for their future plans
- 46% said they are optimistic as their earnings are set to increase
- 44% say they are on the way to achieve their plans
- 37% said they have saved enough for a deposit
Sara Palmer, Sales & Distribution Director at Shawbrook Retail Mortgages, comments: “Getting on the property ladder is no small task, and this only becomes trickier for non-PAYE workers, who may have several income streams or fluctuating incomes, and therefore are more likely to face rejection from high-street banks. It’s encouraging to see this barrier has not dulled the spirits of Gig Economy workers, who are taking steps to get on the property ladder. Speaking to a broker that has experience dealing with specialist cases and good relationships with specialist lenders will ensure that those on complex incomes get the support they need to fulfil their property ambitions."
