Can I Get A Mortgage As A Freelancer Or Contractor?

In today's world, the way people are working is rapidly changing. As of 2022, it's estimated that there are around 1.77 million freelancers/contractors operating across the UK. It can be difficult to successfully get through the process of getting a mortgage if you're a freelancer but this blog post will outline all you need to know for your mortgage application.

Especially if you're applying for your first ever mortgage as a first-time buyer, it can be an overwhelming experience. But worry not, Bell Financial Solutions are here to help and we offer exceptional support and a hands-on approach. The good news is that, yes, you can get a mortgage as a freelancer. But only if you meet the required criteria...

There are many different categories that fall under the occupation of a ''freelancer'' when it comes to your income and this will have a direct impact on your mortgage application. For example, you may operate as a sole trader, be a director of a Limited company, or work on fixed-term contract basis.

Why Do Freelancers Typically Struggle To Get A Mortgage?

Freelancers often struggle to get a mortgage because of income. Especially if you have only just established yourself as a freelancer, it can difficult to prove to lenders that you have sufficient proof of income. For example, if you have just exited the employed world and transitioned into self-employment, there will be limited information on how and if you can potentially afford the monthly mortgage payments. Therefore, freelancers must have at least 1-3 trading with a tax return filed to be eligible to apply for a mortgage. Unstable income may also play a part in freelancers struggling to get a mortgage as the nature of being self-employed equals potential uncertainty and the fluctuation of income.

How Can I Get Accepted For A Mortgage?

Although it may be more difficult for freelancers than the employed, it's still very possible for freelancers to get accepted for a mortgage. If you have 1-3 years of tax overviews and tax calculations (depending on the lender you use), you can start the process to see exactly how much the lender will allow you to borrow. Tax overviews and tax calculations clearly show the net income you have made over the last 1-3 years, as well as the tax that you have paid on your earned income. This then provides the lender with the necessary documents required to calculate your mortgage affordability. Essentially, the more years you have under your belt a a freelancer, the better your chances of being accepted for a mortgage as you can prove sustainability within your work.

Fixed-Term Mortgage Contracts For Freelancers

Here at Bell Financial Solutions, we assist with providing fixed-term mortgage contracts for freelancers. With a fixed-term mortgage, you are guaranteed a set interest rate over a number of years regardless of current marketing conditions and fluctuations. A fixed-term mortgage is favourable for both the freelancer and the lender. In an ever uncertain market, fixed-term mortgages help to protect you against rising interest rates. Moreover, you'll also know exactly how much money you'll be paying on a monthly basis for your mortgage, and therefore, this allows you to budget much easier and with less stress.

How Can Bell Financial Solutions Help?

Whether you're a freelancer/contractor looking for a first-time buyer mortgage or you're a home mover, it's possible that Bell Financial Solutions can help in securing you a mortgage. However, at least initially, there are no guarantees and we would offer a free consultation where we would learn more about your current personal circumstances, years and experience as a freelancer, and further information that would be necessary before a mortgage application.

To summarise, yes, it's very possible for you to get a mortgage as a freelancer. The background checks are more vigorous as you typically appear as more of a threat than an employed person applying for a mortgage. Fortunately, we provide a comprehensive service and do all the work for you to give you the very best chance of securing your mortgage for your first or new home.

For more information, please call us today on 0161 791 4757 or book your appointment.

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