70% of gig economy workers said their job status stopped them getting a mortgage, research from The Mortgage Lender (TML) has found.
Research revealed that 37% of those earning from temporary contracts planned to buy their first home, but most believed their employment situation made it harder to do so.
Of those who applied for a mortgage, 63% said they had been turned down at least once.
36% said they were rejected because their profession was considered unsteady, and 29% said their income was too volatile.
Additionally, 38% blamed a low credit score while 33% said they had missed payments in the past.
21% of those who said their job impacted their property plans said they might have to give up on owning a home.
15% expected they would have to rent longer and another 15% thought they might never get a mortgage.
Many gig economy workers said they had already made sacrifices to afford a home.
Research found that 31% cut back their social life, 30% paid higher rent to live where they wanted because buying was not possible, 27% lived in a less preferred area, 25% delayed starting a family, 21% put property plans on hold and 20% delayed other goals.
Despite these challenges, most gig economy workers were still hopeful, as 86% said they felt positive about their future property plans.
Meanwhile, 46% were optimistic as their earnings were set to increase and 44% said they were on track to reach their goals.
37% had saved enough for a deposit.
Sara Palmer, sales and distribution director at Shawbrook Retail Mortgages, said: “Getting on the property ladder is no small task, and this only becomes trickier for non-PAYE workers, who may have several income streams or fluctuating incomes, and therefore are more likely to face rejection from high-street banks.
“It’s encouraging to see this barrier has not dulled the spirits of gig economy workers, who are taking steps to get on the property ladder.
“Speaking to a broker that has experience dealing with specialist cases and good relationships with specialist lenders will ensure that those on complex incomes get the support they need to fulfil their property ambitions.”
