Two in five flexible workers are worried about the legal complexities involved with securing a mortgage, according to new research by the Association of Independent Professionals and the Self-Employed (IPSE).
38% of the 1,176 self-employed professionals surveyed said they were still concerned about mortgages despite the Conservative Party’s pledge to review mortgages for skilled individuals in its election manifesto last month.
Even more contractors (63%) believe it is more difficult for flexible workers to secure a mortgage compared to their fully-employed counterparts, with many citing that they “have to jump through more hoops” than other workers;
furthermore, 61% revealed that financial advisors are often unable to provide advice tailored to their financial requirements, while almost half admitted that they think mortgage lenders are biased against flexible workers as customers.
IPSE has called for a government review on lending for the flexible workforce and is currently lobbying for mortgage advisors to provide better advice on independent working and the financial commitments involved.
IPSE chief executive Chris Bryce said: “Getting a mortgage is a major concern for the self-employed, despite 4.5 million people choosing to work independently in the UK.
” He added: “It’s crucial that better advice is given to mortgage advisors to provide them with a better understanding of independent working to ensure the self-employed are treated fairly. A dedicated member of staff is another way to achieve this.”
The Conservatives revealed in their manifesto that they are aiming to give greater assistance to the self-employed seeking to obtain mortgages and access to other benefits, such as pensions and maternity pay.