Research on behalf of the lender found that 22% of contractors and self-employed workers believe the way they earn their income has made it more difficult for them to get a mortgage compared to when they were in full-time employment.

The survey of 250 contractors and self-employed workers conducted by YouGov was commissioned by Accord Mortgages in order to understand the needs of contractors. This has led it to piloting a bespoke lending policy, which takes greater consideration of the way contractors receive their income, with five selected specialist broker firms with the view of expanding to the full market during 2017.

It showed 29% of contractors believe that financial service providers perceive as them a bigger lending risk. The number of people worried about being accepted for a mortgage is greatest amongst those with less than two years’ experience in contracting work (19%) – however it is still a concern for the more seasoned worker (17%) who been contracting between three to ten years.

Despite contractors and the self-employed equating to 22% of the UK workforce, 19% of those questioned said they feel that dealing with financial institutions is more complex now due to their work status and 16% found the process of applying for a mortgage difficult.

The research showed a relatively even split between contractors and self-employed who secured their home loan through an intermediary (39%) and direct through a lender (40%). 54% who have been self-employed between one to ten years preferred to get their mortgage via a broker.

David Robinson, national intermediary sales manager at Accord, said: “It’s obvious why contractors are concerned about getting a mortgage: they are applying for the same products as everyone else yet often they have to jump through more hoops to secure it.

“Although their income can be irregular, in some cases they actually have a higher earning potential than when they were a permanent employee, so it must be frustrating to know they can comfortably make their mortgage repayments yet some lenders still view them as a risk.

“As more lenders serve this niche group better, it presents a golden opportunity for intermediaries. The application process can be complex for contractors so, as our data shows, many want a broker to expertly steer them through it.”

Luke Somerset, associate director at Niche Financial Group, added: “The myth that it’s a gamble to lend to contractors is slowly being debunked. Many lenders are working to understand more about contractors’ circumstances and they are adapting lending criteria to reflect this.

“There’s no denying that more legwork is involved at the front-end of the application process for contractor clients – for both the broker and lender. It’s essential for lenders to have specialised underwriters who can take the time to fully understand a case to ensure a smooth process for all involved.”