Your Business and Industry

How big is the market of clients with 2nd incomes?

It will come as little surprise that the effects of the last 18 months are now resulting in rising demand for flexible underwriting for complex income residential cases; and this is true for both employed and self employed borrowers.

The pandemic has been the driving force behind many people changing their employment status and how they earn – either through choice or necessity.

PeoplePerHour, a platform for freelance workers, reported its biggest rise in registrations for more than a decade. PeoplePerHour reveals that:

  • Nearly one in five freelancers (19%) are now self-employed with a supplementary ‘side gig’ alongside an employee position.
  • Almost two fifths of these (37%) said they started freelancing in the last 12 months, suggesting a spike in the number of 2nd jobbers during the pandemic.
  • Nearly a quarter (24%) of those freelancers surveyed said they had gone into self-employment to add to their main income.
  • Almost a quarter of a million (227,000) people applied to use the platform in 2020, up from 136,000 in 2019.
  • Ninety-eight per cent of people with a 2nd income stream said they plan to continue freelancing in some form.
  • Importantly, 13 per cent said they planned to take their side gig full time, 22 per cent said they planned to work part time as a freelancer and 33 per cent said they would continue freelancing alongside a full time employee position.

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People’s motivations for taking up freelancing were said to be overwhelmingly positive, with over half (55%) citing the desire for greater flexibility and over two fifths (44%) saying they wanted to increase their income.

It’s evident that many people are becoming more and more reliant on a wider variety of ways to generate income. As a result of this, we have been working hard to develop and implement a significant number of product and criteria related enhancements to better service the ongoing mortgage requirements of the self employed community and enable borrowers with complex incomes to access the mortgages they need within responsible underwriting boundaries.

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