According to new research from the Association of Independent Professionals and the Self-Employed (IPSE) and mortgage supplier CMME, around 7 out of 10 self-employed workers (71 per cent) are worried about how they can save for later in their lives in the wake of the COVID-19 pandemic.The research polled 624 freelancers in the UK on their approaches to issues such as savings and mortgages.
The study found that concerns about savings were more pronounced among women freelancers, with 78 per cent of self-employed women reporting being concerned about savings, in comparison to 69 per cent of men. Results also showed that women freelancers were less likely to be saving than their male counterparts, with 20 per cent of women saying they were not saving, compared to just 12 per cent of men.
The poll also revealed considerable skepticism among freelancers about how they would be treated by mortgage lenders. Just 19 per cent thought they would be treated fairly, in comparison to 50 per cent who felt they would not be treated fairly.
38 per cent of respondents that had obtained a mortgage this year said that the process had been somewhat or very difficult, a 57 per cent increase on 2020. Furthermore, 40 per cent of respondents that had received funding under the Self-Employed Income Support Scheme (SEISS) during the pandemic said they feared it might negatively impact a mortgage application.
IPSE Director of Policy Andy Chamberlain said: “Today findings are a wake-up call for lenders and the government. While the focus in recent months has been on economic challenges like supply chains and rising inflation, more attention needs to be given to self-employed workers, who have taken the brunt of the pandemic.”
“The government needs to work alongside the financial sector to alleviate the barriers preventing more freelancers from accessing financial products. Around 1 in 7 working people in the UK are self-employed. Not only do we have a responsibility to ensure they have the same ability to save and buy a home as everyone else, lenders should recognise the self-employed make up a huge and potentially lucrative market.”
