More than a quarter (28%) of those who currently work for themselves are considering giving up self-employment, increasing significantly to two-thirds (65%) for those aged 18-34 years old, according to new research from Bluestone Mortgages.
This comes at a time when over a third (37%) of self-employed workers say they are worse off since the start of the Covid-19 pandemic.
The main reasons for being financially worse off are loss of income (59%), having to use savings (34%), and unstable employment (24%).
This sentiment is reflected in how the self-employed feel about current job prospects. Just under two-fifths (38%) feel optimistic towards the state of their business or opportunities to get work this year, with over a third (36%) feeling neutral and a fifth (20%) feeling pessimistic.
Despite this, the research finds that self-employed workers are fairly upbeat about their finances.
Just under half (47%) are confident about their financial situation, two fifths (41%) are confident about their financial future, and nearly half (48%) have a comfortable amount of savings or investments.
Steve Seal, chief executive, Bluestone Mortgages, said: “We are well aware of the struggles the self-employed have faced as a result of Covid-19, whether that be lack of work, reduced income, or having to dip into savings, all of which can impact their creditworthiness.
“As a result, self-employed workers often encounter challenges when it comes to securing a mortgage, because their criteria does not fit what is deemed the ‘norm’, even if they have their finances in order.
“However, it’s important for these would-be borrowers to remember that there are options out there to help them achieve their homeownership goals, even if they have been turned down elsewhere. Our message to people in this position is don’t give up hope, there is help at hand.”
