Head of Content
Mortgage Advisor & Director
Can freelancers get a mortgage?
It's no secret that the economy has been tough in recent years. More and more people are turning to freelance income as a way to make ends meet, and there are now estimated to be over 2.2 million freelancers in the United Kingdom.
So the question is, can you get a mortgage with freelance income? The answer is yes - but it's not always easy. In this article, we will discuss the pros and cons of getting a mortgage as a freelancer, and help you decide if it's the right option for you.
Getting a mortgage as a freelancer
The first thing to consider is that, as someone who is self-employed, you may not have the same income stability as someone who has a traditional job. This can make it difficult to get approved for a mortgage. Mortgage lenders will want to see that you have been self-employed for at least two years and that your income has been relatively stable over that time.
If you can prove that you have a stable income, there are a number of mortgage lenders who will be willing to work with you. However, the interest rates may be higher than they would be for employed workers with a steady income. This is because there is more risk involved in lending to freelancers and other self-employed people.
There are also some other things to consider when getting a mortgage as a freelancer. For example, you may need to have more money saved up for a deposit, and you may not be able to get the same loan amount as someone with a conventional job.
Overall, getting a mortgage as a freelancer can be tricky - but it's definitely doable. If you're thinking of buying a home, it's worth discussing your options with a mortgage broker. They can help you find the best deal for your unique situation.
Am I eligible for a freelancer mortgage?
There is no single answer to this question, as the mortgage eligibility criteria for freelancers can vary from lender to lender. However, in general, many lenders will require that you have been self-employed for at least two years before they will consider your application. This is because they need to be confident that you have a steady income history and that your freelance business is sustainable.
If you're a freelancer who is thinking of buying a property, the best thing to do is speak to a specialist mortgage advisor to find out what your options are and give you personalised mortgage advice. They will be able to assess your individual circumstances and give you tailored advice on which lenders are most likely to approve your application.
Why is it so hard for freelancers to get a mortgage?
Freelancer mortgages are difficult to get for a number of reasons. The first reason is that you need to have a steady income in order to qualify for a mortgage. Freelance work is not always as reliable as full-time employment, which can make it difficult to prove your income.
So, what can you do if you're a freelancer who wants to get a mortgage?
There are a few things that you can do in order to improve your chances of getting approved for a mortgage. First, make sure that you have a good credit score. This will show the mortgage providers that you're responsible with your money and make them more likely to approve your application.
You can also try to increase your income by finding new clients or raising your rates. This will show lenders that you're able to make a consistent income from your freelance work.
Finally, be prepared to provide lots of documentation about your finances. This will help prove to lenders that you can afford the mortgage payments.
What do you need to do in order to get a mortgage as a freelancer?
There is no one-size-fits-all answer to this question, as the eligibility criteria for freelancers can vary from lender to lender. Here are some steps that you can take:
Make sure your credit rating is good.
Be prepared to provide lots of documentation about your finances and net income, such as bank statements
Talk to a mortgage broker about your options.
Increase your income by finding new clients or raising your rates.
Be prepared to pay a higher interest rate.
If you're a freelancer who is looking for a new home, don't give up! There are many ways that you can get approved for a mortgage. Talk to a mortgage broker today to learn more and get mortgage advice that is tailored to your situation.
When it comes to mortgages, freelancers often face an uphill battle. This is because they typically don't have the same stable income as someone who is employed full-time. As a result, it can be difficult for them to get approved for a mortgage.
Fortunately, this doesn't mean that freelancers can't buy a home. There are a number of specialist lenders who will work with you, as long as you have a good credit score and can prove that you can afford the monthly repayments.
Getting a mortgage as a freelancer with bad credit
If you're a freelancer who is having trouble getting approved for a mortgage, don't worry! There are still ways that you can get the loan that you need. One option is to work with a mortgage broker. This professional will be able to help you find the right niche lender and loan for your situation.
Another option is to try to get a co-signer for your mortgage. This person will be responsible for making the payments if you're unable to do so.
If you have bad credit, it may be difficult to get approved for a mortgage as a freelancer. However, there are still options available to you. Talk to a mortgage broker today to learn more about your options.
Will I need a specialist lender?
Most lenders, especially high street lenders, are wary of offering mortgages to someone with self-employed income. This is because the income of a freelancer is not as stable as someone who is employed full-time. As a result, these lenders see it as too much of a risk to offer a mortgage to someone who is self-employed.
This doesn't mean that you can't get a mortgage though! Fortunately, there are specialist lenders who offer self-employed mortgages and consider all types of freelance income. These lenders understand that freelancing is a viable career and are more likely to offer you a mortgage.
Your best chance of mortgage approval is by working with specialist advisors who are experienced in self-employed or freelancer mortgages. They will be able to help understand the lending criteria, help with your mortgage application and find the best lender for your situation.
Apply now with Teito
At Teito, we understand that it can be difficult for freelancers to get a mortgage. We work with 90+ mortgage lenders offering thousands of mortgage deals, so we're sure to find the right one for you.
When it comes to mortgages, freelancers have a few more hoops to jump through than those who are employed full-time. However, this doesn't mean that it's impossible to get a mortgage as a freelancer.
If you're a freelancer who is looking for a mortgage, apply now with Teito! We'll help you find the best deal possible.
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.
