Can I get a mortgage as an agency worker?
Mortgage lenders can sometimes be a little more reluctant to offer mortgages to agency workers because, unlike a person in more traditional employment, they don’t offer the security of a guaranteed salary. However, there are ways for agency workers to prove that they can afford to make mortgage repayments without needing the backing of a permanent employer. In the past, many agency workers have had to opt for self-certified mortgages, which can be expensive. However, there are lenders who will offer mortgages to agency workers based on the same kind of rates as those offered to traditional employees.
How are mortgages for agency workers assessed?
Mortgage applications for agency workers are assessed in differently from traditional mortgage applications. Instead of looking at traditional forms of income assessment, lenders will use specialist underwriting criteria. A normal mortgage application will be assessed on the basis of your salary - which meant that, in the past, many agency workers faced difficulty securing the mortgage they wanted. However, many mortgage lenders will assess an agency worker mortgage application on a case by case basis, using a combination of factors which might include:
Key points to remember when looking for mortgages for agency workers include:
Find a specialist mortgage broker - a mortgage broker who is familiar with the needs of agency workers could help you to get the best deal available.
Aim for a high deposit if possible – the higher the deposit you can put into a property, the less risk the lender is taking on. This can mean lower rates for buyers.
Check your credit score – this is important for all mortgage borrowers, but it’s especially important for people seeking mortgage from a non-traditional employment background, as it reassures the lender that you have a good history of making repayments.
Gather all your documentation – most importantly, you will need an up-to-date copy of your contracts, pay slips and other documentation relating to your agency work. This gives lenders a clearer picture of your income.