The study estimates around 1.23 million workers are currently on full-time or part-time contracts at work and Kensington believes the number is continuing to grow as employer and employee attitudes change.
The study for Kensington highlights contractors are potentially highly credit-worthy – around 42% working on contracts say they earn more than they did in staff jobs and 45% have been working on contracts for two or more year. Around 17% have been contractors for 10 years or more.
However that does not prevent problems with applying for credit – 33% have had issues with mortgage applications while 29% have had problems accessing unsecured loans or credit cards.
Sarah Green, Head of Sales and Marketing at Kensington, says:
“Contractors, who can earn steady income despite not having the security of a regular payslip, can prove troublesome to some lenders.
“However, the world of work is changing. It is clear the number of contractors is increasing and that in many cases they earn more than they would in staff jobs.
“Kensington treats customers as individuals. Our underwriters assess each application on its own merits and we will always look to lend to a contractor who fits our criteria.”
