UK Gig Workers Experience Financial Exclusion When Seeking Loans and Mortgages

New research finds that 76 per cent of UK gig workers have struggled to gain approval to access financial products such as a loan or mortgage.

FREMONT, CA:Over three-quarters of UK gig workers report difficulty getting financial institutions to approve their access to financial goods like a loan or mortgage. Despite having a decent credit score, slightly over 7 in 10 (74 per cent), UK gig workers have been denied access to fundamental financial products like loans. Over half (60 per cent) of the 1002 gig workers surveyed said they had to apply to three or more lenders before being approved for a credit card or loan. Ten per cent of those who used their first lender were approved.

In the UK today, 4.4 million people who work for gig economy platforms at least once a week generate Euro 20 billion in economic output.

The paper emphasises how the difficulty in obtaining financial products is affecting the lives of gig workers throughout the UK. In fact, despite knowing they had affordability, more than half (52 per cent) of gig workers surveyed say they were turned down for a new property by a bank or building society.

In a poll, gig workers also discussed their difficulties in getting credit cards or other financial services. A third (32 per cent) of respondents claim it has caused stress for them and their families. Eighty per cent of gig workers surveyed are worried that the present economic situation will affect their ability to get a loan granted, and 25 per cent plan to ask for a loan in the coming months to help with the expense of living over the winter and the Christmas season.