Specialist mortgage provider for contract workers CMME and the Association of Independent Professionals and the Self-Employed (IPSE) have together published a manifesto calling on the government and the mortgage industry to both work to end the alleged “mortgage discrimination” against self-employed workers.
According to a recent report from CMME and the IPSE, 68 per cent of contractors believe that they are being punished by financial services for going freelance and only 1 in 10 self-employed workers say that they are planning to purchase a property in the next five years.
Andy Chamberlain, Director of Policy at the IPSE, said: “After decades of frustration, unfairness and prejudice, it is finally time for the government and the financial services industry to wake up and end the discrimination against self-employed workers. For too long, freelancers have found it far too difficult to access a mortgage, with lenders unfairly shutting down mortgage applications and forcing thousands off the housing ladder for being self-employed.”
Chamberlain continued: “While the Self-Employment Income Support Scheme was a lifeline for thousands of freelancers during the pandemic, our research has shown that 2 in 5 (40%) people who accessed the program believe that they could be penalised in a mortgage application. We are therefore calling for the government and the industry to solve this issue and ensure that those that needed SEISS to survive aren’t financially damaged long term.”
The manifesto suggests that the government and the mortgage industry should work together to make it easier for the self-employed to successfully apply for mortgages and that mortgage lenders should train their advisers on the self-employed sector, to enable them to better understand the often complex financial situations of freelance workers.
Mike Coshott, CEO at CMME, said: “As we come out of the pandemic, it is paramount that self-employed workers can confidently access mortgages and other financial products, without fear of judgement and prejudice for being a freelancer.”
“For too long,” Coshott said, “contract workers have found it far too difficult to access financial support and following increased uncertainty during the pandemic, it has never been a more important time to alleviate the barriers that freelancers face. Today’s manifesto offers the government and industry a roadmap to recovery and financial stability for self-employed workers, with measures such as extending the mid-life MOT being a potential lifeline to thousands of freelancers.”
