A new study from specialist lender The Mortgage Lender (TML) has revealed that nearly four-fifths (79%) of non-traditional workers, including freelancers, self-employed individuals, and gig economy workers, have homeownership aspirations. Despite the rather tricky hoops that these kinds of workers often have to jump through to secure a mortgage. However, while optimism is high among this group, securing a mortgage can present unique challenges. Challenges that only an experienced mortgage advisor can help with. In this article, I will go through the data from TML and talk about getting a mortgage as a non-traditional worker.
The Growing Demand for Homeownership Among Non-PAYE Workers And Non-Traditional Workers In General
The research from TML clearly highlights a strong demand for homeownership within the non-traditional workforce. A trend that thankfully seems to be building day by day in 2025. Here is what the research has found so far:
- 22% plan to buy their first home.
- 14% aim to become landlords.
- 11% intend to purchase a second home.
- 9% are considering selling or downsizing.
Despite the challenges associated with securing a mortgage as a freelancer or self-employed individual, the majority (73%) of those with property ambitions believe they will achieve their goal within the next five years. This confidence is particularly high among younger buyers, with 84% of 18-24 year olds feeling optimistic about their homeownership prospects.
Why Are Non-Traditional Workers Optimistic About Homeownership?
The study identifies several factors driving optimism among non-PAYE workers:
- Increasing earnings: 35% of respondents expect their income to rise.
- Progress towards property goals: 35% are already taking steps to achieve their plans.
- Deposit savings: 33% believe they will have saved enough within five years.
- Economic factors: 24% expect interest rates to drop, 17% foresee stable inflation, and 12% believe government plans to build 1.5 million homes will improve affordability.
Challenges Facing Self-Employed and Gig Economy Workers
While many non-traditional workers are optimistic, 24% do not believe they will achieve homeownership in the near future. The biggest barriers include:
- Affordability concerns: 36% find property in their desired area too expensive.
- Deposit challenges: 33% have yet to save enough for a deposit.
- Cost of living pressures: 53% have had to redirect their savings towards daily expenses.
- Tax and mortgage concerns: 20% worry about rising taxes, while 15% fear that interest rates will remain too high.
Do Lenders Support Self-Employed Mortgage Borrowers?
Securing a mortgage as a freelancer or self-employed worker can be more complex than for those on a traditional salary. Many lenders require extensive proof of income, often spanning multiple years, which can make it difficult for those with fluctuating earnings.
Sara Palmer, Distribution Director at The Mortgage Lender, emphasises the need for lenders to recognise the ambitions of non-traditional workers:
“Whilst the hurdles to homeownership can be especially high for non-traditional workers, it’s encouraging to see that so many members of this group are still keen to pursue their homeownership plans. This is a testament to their resilience, and as lenders, we must recognise this ambition and ensure we’re aligning our product offerings to match. At TML, we’re keen to support non-PAYE workers through real-life lending, which means working closely with brokers and regularly reviewing our criteria to best help people achieve their property ownership goals.”
Tips for Self-Employed and Freelance Mortgage Applicants
For non-traditional workers looking to secure a mortgage, there are several steps that can improve the chances of approval:
- Keep detailed financial records: Lenders typically require at least two to three years of accounts or tax returns.
- Work with a specialist mortgage broker: Brokers with experience in self-employed mortgages can help navigate lender requirements.
- Improve your credit score: Paying off debts and ensuring bills are paid on time can make a significant difference.
- Save for a larger deposit: A higher deposit can make lenders more willing to offer a mortgage.
- Demonstrate stable income: Consistent earnings over time will improve mortgage eligibility.
The Future of Homeownership for Non-PAYE Workers
With nearly four in five self-employed and gig economy workers aiming to buy a home, there is clear demand for mortgages that cater to non-traditional income streams. While challenges such as affordability and economic uncertainty remain, the growing range of mortgage products tailored for freelancers and the self-employed is helping to make homeownership a reality for many more people.
For those navigating the mortgage process, seeking expert advice and staying informed about the latest lender criteria will be crucial in securing the right deal. If you are self-employed and looking for mortgage advice, speaking to our team at Oportfolio Mortgages today.
