Mortgages for temps and agency workers
Getting a mortgage when your work pattern and income fluctuate can be a tough gig. With our experience helping the flexible workforce, we can help break down the barriers. Here, discover:
- Why High St. lenders reject temp and agency workers
- What lenders really want to see from flexi-workers
- How access to our specialist underwriters can help
- What you could borrow at-a-glance with our calculator
Can temps and agency workers get a mortgage?
The answer is, “Yes!” Since 2004, we have helped thousands of agency workers remortgage or get on the property ladder.
Agency workers often struggle to secure a mortgage due to the unpredictable nature of their income. This makes lenders nervous.
Many lenders still prefer employed workers, whose underwriters view full time, PAYE income as more stable.
Not so with us! We’ve built relationships with mainstream and specialist lenders who offer mortgages to UK agency workers.
Our mortgage advisers know which lenders look more favourably on agency workers. Just as important, we know how to present your application to show your income in its best light. Chat with our expert brokers to see how we can help you with your first/next mortgage, too.
What type of agency workers can apply for a mortgage?
We’ve helped agency workers from all walks of life secure a mortgage, including:
- warehousing staff;
- healthcare staff;
- construction workers;
- IT workers;
- and people working in education.
Key to a successful application is finding the lender most suited to dealing with agency workers. This can be quite a challenging if you set out to do this on your own. That’s why we recommend that you talk to our specialist broking team to match you with the right lender.
Fill out the form below to take the first steps towards landing the home your hard work deserve.
Why Freelancer Financials?
We’re specialists in arranging mortgages for agency workers and people working rolling temporary contracts.
We’ve been helping the flexible workforce secure mortgages since 2004. Over this time, we’ve created a network of contacts with underwriting teams at mainstream and specialist lenders.
Leveraging our experience and access is the best way to secure the best deal for the property you want to buy.
Our mortgage brokers have working relationships with all the relevant lenders. That includes lenders who look more favourably upon agency workers, temps and zero-hours contract workers.
In many ways, you personify flexible working. It’s our job to ensure your flexibility isn’t a barrier to you getting the home your graft deserves.
Why do agency workers struggle to get a mortgage?
The temporary nature of agency workers’ contracts is one reason mortgage advisers shun you. The potential gaps between job assignments is another. Combined, they can raise concerns about your ability to maintain regular mortgage repayments.
Lenders need a track record of working history to ensure you can afford your potential mortgage. They obviously want to see that you can afford them now, but also into the future.
We recognise that your earnings can fluctuate from month to month, and maybe on varying contract rates. Even so, we can present an average annual income for lenders to assess your affordability.
In most situations, this is enough for our experienced broking team to secure you a mortgage.
What factors impact my ability to get a mortgage as an agency worker?
Lenders will look at a wide range of eligibility and affordability criteria to assess what you can borrow. Their lending criteria will typically include them considering:
Your work history:
Most lenders require a consistent work history, often requiring at least 12 months of continuous employment.
Your contract type and its length:
To assess your mortgage affordability, lenders will want to know:
• the type of agency contract you’re on,
• whether it’s fixed term or temporary,
• whether your contract has recently been renewed,
• the length of your existing contract (the longer the better!).
Your income (and proof thereof):
Lenders will need to see payslips, bank statements, and/or contracts to 'evidence' your income.
Your credit history
A good credit history is important to satisfy lenders' criteria for offering agency worker mortgages.
Any gaps in your employment
Keep employment gaps between contracts to a minimum, ideally no more than 6 weeks. This will reassure lenders that you can repay your mortgage over the long term.
Your deposit
Lenders want you to have at least a 5-10% deposit of your potential property's sale value.
How much can an agency worker borrow for a mortgage?
Every lender has its own unique set of rules based on their underwriting policy and attitude to risk. So, how much an agency worker can borrow for a mortgage depends on many factors, such as:
- income,
- size of deposit,
- credit history,
- and that lender’s unique affordability criteria.
Usually, lenders apply a multiple of 4.5 to 5.5 times your annual salary or income as the basis of their affordability calculation. But this can vary based on your individual circumstances and how your situation meets their criteria.
If your income has fluctuated over the last 12-months due to different contracts, lenders typically use your last 12 months’ average earnings. However, a handful of lenders that we work with can use the most recent earnings or your latest contract.
How much can I borrow?
Can agency workers with bad credit get a mortgage?
Bad credit and a lack of permanent employment can reduce your options for getting a mortgage. But it’s still possible, with the right help.
Working with a specialist broker can get you the right mortgage from a specialist lender. We work with a number of such lenders at underwriter level. They will manually assess your application, weighing up your situation and circumstances on a case-by-case basis.
Your mortgage options will depend upon:
- the severity of your bad credit,
- how long ago the bad credit incidents took place, and
- what reparations you’ve made to addressing the credit issues.
For example, one late payment registered a few years ago will not affect your chances of getting a mortgage. But a recent bankruptcy, CCJ or default will drastically impair your chances.
If you’re an agency worker with bad credit and are concerned about your prospects, talk to us. With a copy of your credit report, a specialist broker from our team can run through your options.
Types of mortgage available
Our flexible, competitive solutions are designed to make your mortgage journey easier. We offer a range of mortgage products designed for agency workers and temps, including:
First-time buyer mortgages
Home mover mortgages
Remortgages
