Self-employed people are making sacrifices such as delaying starting a family, marriage and investing in their businesses to improve their chances of getting a mortgage, a lender found.
Research into 2,001 non-traditional workers in the UK by Together found that 15% put off starting a family, 12% delayed getting wed and 19% were unable to invest in their business because they were focused on getting on the property ladder.
Some 37% stopped travel plans and 28% limited socialising or eating out with friends. A tenth of respondents stopped pursuing further education to get a mortgage instead, the research found.
Two-fifths of the people whose mortgage applications were rejected said this was due to their self-employment, while 18% said they struggled to prove their income. A further 18% said their diverse income streams made it harder to buy a property.
Respondents also felt their prospects were less favourable, as 87% were convinced they missed out on competitive mortgages because of their employment status.
In addition, 73% of respondents said there were not enough products available to suit their needs, while 28% who applied for a mortgage in the part said it was difficult to source a lender to support their application.
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Ryan Etchells, chief commercial officer at Together, said: “It’s frustrating to see that self-employed borrowers, even when they can access mortgages, are having to put on hold important life goals to achieve their home-owning ambitions.
“Across the mortgage market, we are seeing an increasing average age for first time buyers and families facing cramped conditions because they can’t move out of their starter home after having their first children – but the situation is even worse for self-employed or freelance workers.”
He added: “They face further challenges because of the way the mainstream mortgage market works, where those who may be high earners but whose income may be inconsistent are simply ignored, a situation we believe needs to change.
“With the government gunning for growth, the inability for the self-employed to access the mortgages they’re looking for could be holding the wider economy back and stopping many from getting on the ladder at all.
“That’s why specialist lenders such as Together believe it’s crucial to support self-employed borrowers and other under-served sections of society.”
