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Mortgage Advisor & Director
Can I use investment income to get a mortgage?
Securing a mortgage using income from investments may not be as straightforward as you might think.
Borrowers with a steady, stable income from long-term employment will be blessed with the widest choice of lenders; however, it is possible to get a mortgage with non-standard income, such as investment income.
Your best chance of getting the best deal on an investment income mortgage is by using an experienced and competent broker. Not only will they be able to recommend the most suitable lenders for investment income mortgages, but they will also work to maximise your chances of approval while finding the perfect mortgage deal for your situation. At Teito, our team of expert advisors have helped many people like you to get the best deal on their investment income mortgage. Get started comparing deals today, and we promise to make your mortgage journey as stress-free as possible!
Why is it harder to get a mortgage with investment income?
It may be more difficult to get a mortgage using investment income compared to income from long-term employment, which comes down to risk from the lender's perspective. The ideal scenario is a single source of income, paid regularly, from stable work. However, not all lenders take this view, and there are specialist mortgage providers who are prepared to lend on complex income streams such as investment income.
How to boost your chances of approval
There are several steps you can take to improve the chances of your mortgage application being accepted.
Maintain comprehensive financial records
Bank statements, profit and loss statements and previous year's tax returns will provide a good indication of long term affordability and help the lender to predict your future income.
It is likely that you are not looking to qualify for a mortgage with 100% investment income.
If this is the case, you should make sure to maintain comprehensive records of all your income streams to give the lender a complete picture to allow affordability assessments.
Understand and improve your credit rating
By checking and improving your credit history with the major agencies, you will demonstrate to lenders that you are a reliable borrower. Use credit sensibly and make repayments on time to reduce the risk of you as a borrower. Be aware that it can take some time for significant improvements to be realised, so if your credit rating is a problem, then plan ahead and dedicate the time to get your score back on track.
Save more towards a deposit
As a borrower with a non-standard income, you are unlikely to qualify for the highest Loan to Value mortgages on the market. If you're looking for a high Loan to Value deal with a complex income, this further narrows the pool of available lenders and can reduce your chances of getting the best deal - as well as meeting all eligibility criteria to qualify.
To avoid this scenario, contributing more towards a deposit on your home will help to open up the market and widen your choice of mortgage deals.
Learn more and apply
At Teito, we are a whole-of-market broker, which means we work with more than 100 lenders offering 20,000+ deals, including those willing to lend on investment income. We've streamlined the mortgage process to eliminate the unnecessary and time-consuming steps, and the result is a straightforward and stress-free application process. Get started comparing deals now and find your perfect mortgage.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
