Gig worker mortgages

Gig worker mortgages

Although gig workers, also known as contract workers or freelancers, can find it hard to obtain a mortgage on favourable terms, some mortgage providers will consider you even if your net income fluctuates and you’re just starting your career. Most UK mortgage lenders on the high street may not be able to help, which is where our mortgage brokers can help.

Click the link below for a mortgage as a gig worker, which will offer free mortgage advice and introduce you to a mortgage lender suitable for you. The financial services register records each mortgage broker therefore we can discuss monthly mortgage payments and let you know what will be required for the mortgage application process.

Use our online mortgage calculator as a guide for your monthly repayments now

Can I get a gig worker mortgage?

Yes, our mortgage brokers are experts in self-employed mortgages and also arrange home loans for gig workers daily and provide mortgage advice. First, mortgage lenders want to know what category you fall under for gig work and there are three types of business structures that freelancers can choose from in the UK.

Your chances of getting a mortgage are determined by which category you fall into.

• Solo trader The business is yours alone.
• Partnership This is where you and your partner run your freelance gig.
• Limited company – A small private company whose owners will be responsible for their debts up to the amount they have invested. Learn more about mortgages for limited company directors.

Our specialist brokers help self-employed applicants daily. A mortgage advisor would discuss the loan programs with you for a freelance income and then introduce you to a suitable lender. Our main aim is mortgage approval; click the link below to begin applying for a mortgage. Whether you have a good credit score, other debts or a bad credit score, we make the home buying process more possible and less stressful.

What are the lending criteria for getting a mortgage as a gig worker?

Many gig workers worry about qualifying for a mortgage as they don’t have traditional employment. Once you have spoken with a mortgage broker, you should be able to determine if you are eligible for gig worker mortgages. We would match you with a lender who offers these mortgage types.

To qualify for a mortgage, the following are the top priorities for most providers:

• Your Income: Minimum two years of steady or growing profit. Keep records current and accurate.
• Your outgoings: Your expenses don’t outrank your income.
• Credit history While some lenders may be cautious about approving mortgages for people with bad credit scores; some lenders will approve you.
• Your financial history: Pay all your debts. Also, resolve any negative online reviews about you or your business. The lender needs to be sure you can cover your monthly payments.

Lenders will consider applicants who have been a sole trader or self-employed for a minimum of three years and can show steady earnings. A whole-of-market broker regulated by the financial conduct authority, such as the one we work with, can help you find a specialist lender to offer a self-employed mortgage. This is based on one year’s accounts and projections for future contract work.

To ensure you can meet your monthly mortgage payments, stricter lenders may also ask to see your list of clients and contracts. They might also be interested in your qualifications, references, and network.

How can I prove my income to get a mortgage if I’m a gig worker?

Other than the usual documents (passport, ID, etc. lenders would also like to see the following documents:

• Accounts for at least 2 to 3 years, including invoices and statements from the business bank and business income and business tax returns.
• Maximum three SA302 forms. Lenders want the most current tax returns. This may require filing early.
• Get copies of your contracts.
• A current CV.
• If your company has limited liability, you should bring your business accounts and balance them.

Click the link below to begin your mortgage journey if you are self-employed and looking for a home loan. We will explain the mortgage rates and introduce you to mortgage lenders suitable for you.

How can I increase my chances of getting a mortgage in the gig economy?

Hiring a chartered or certified accountant to prepare your records and a whole market broker who can provide professional advice can help your homebuying process. Be sure to inform your accountant that you are looking to get a mortgage. They may try to minimize your taxes, which could backfire for a home loan.

How does a mortgage for gig workers calculate?

The amount that you could borrow will depend on the type of gig worker…

• Solo trader Lenders will consider your variable income or the average income you have earned in the past two to three years.
• Partnerships Lenders take into account the net income of both partners or the average income earned by both of you over the past two to three years.
• Limited Companies: Lenders will review your salary and distribute dividends. They may assess your salary and net profit in some cases.

Use an online mortgage calculator to estimate the amount you could borrow, whether self-employed or employed as a contract worker. If you have a larger deposit, this will help. To begin discussing loan payments, click the link below.

Can I get a gig economy loan if my income fluctuates?

Yes. Most lenders will use the most recent year to determine your earning potential and offer you a smaller loan if you are applying for a mortgage as a freelancer with fluctuating earnings. Instead, they may choose the year with the lowest income.

How to get a mortgage in the gig economy

To begin your mortgage application, you should click the link below to speak with an expert mortgage broker. We deeply understand the gig economy and can recommend the best lenders for you.

If you have the following:

• A healthy deposit: Anything from 10% to 25% is helpful. A favourable loan is more likely to be granted to those with a larger deposit.
• Be consistent with your contracts. The more you gig regularly, the greater your chances. Avoid gaps between gigs for at least 12-24 months before applying for a mortgage. Long-term relationships and repeat business are helpful.
• Maintain meticulous records. Keep all accounts, paperwork, and electronic records current and accurate.
• Have enough income to pay your mortgage repayments. You can cut down on your expenses or limit the amount of your mortgage.
• Good credit rating
• A specialist mortgage broker These people are familiar with the details and can advise bankers. That’s where we come into play. We can help you find the perfect provider by referring you to experts.

Talk to a professional gig worker mortgage broker.

Begin your journey by speaking with a mortgage advisor. We can explain the loan amount available to you and give you an idea of the interest rate. We will then introduce you to a mortgage provider offering you the best deals and competitive rates for your trading style.

Contact us now for expert free advice right away