Taxi Driver Mortgages

If you’re looking for a taxi driver mortgage, we’ll explain all the possible obstacles and financial complexities you might face and the best approach to overcome them. With our help, you could be well on the way to buying a home of your own.

Can taxi drivers get a mortgage?

Yes, they can, but borrowing the amount you need can be more difficult than for people with other professions, for several reasons.

Firstly, you’re self-employed. Mortgage lenders are sometimes more cautious of lending to self-employed applicants because your income is seen as less reliable. It might rise or fall significantly from one month to the next, so lenders find it harder to calculate how much you can afford to repay (and tend to prefer to stay at the lower end of the possible range).

Secondly, lenders calculate how much you can borrow based on the net income (i.e. your profits minus your expenses) you report to HMRC. As a taxi driver, you have various large expenses that can be deducted from tax purposes: insurance, fuel, car maintenance, taxi company fees, etc. The net income you report may be a lot lower than your real earnings.

Finally, credit history is sometimes a problem. Your income varies seasonally and isn’t always predictable, and you may have more debts than others, such as taxi finance. It’s understandable if there have been times when you’ve struggled to manage. It’s still possible to get a mortgage with bad credit, but you’ll have fewer options.

What if you’re an Uber driver?

You can still get a mortgage. If you’re an Uber driver, lenders will assess your application in the same way as they would any other self-employed person or sole trader. That involves a few additional hurdles, which you can read about in our dedicated articles on self-employed mortgages and mortgages for sole traders.

How much you can borrow

Mortgage lenders decide how much you can borrow using income multiples. This means that they cap the amount you can borrow at a multiple of your annual income – usually between 4.5 and 5.5, but sometimes higher than this. As a taxi driver, your annual income is the net income you report in your SA100 self-assessment.

Try our mortgage calculator below to get a rough idea of your maximum borrowing. Select your trading style using the dropdown menu to get started.

If your income varies from year to year (which is the case for many self-employed people and sole traders), different lenders have their own methods of calculating your typical income, with most taking an average of the last two or three years.

If one of those years was poorer than usual, that method of calculation would limit how much you can borrow. So, you’ll want to find a lender who uses a different method. Some lenders will look at just your last year’s income, which might allow you to borrow more. You might also be looking for a lender with a maximum income multiple of 5.5, rather than 4.5.

How to get a mortgage as a taxi driver

Getting a mortgage as a taxi driver doesn’t necessarily have to be any more difficult than any other type of employment as long as you’re well prepared in advance. That’s why the smart first move is to speak with a mortgage broker who already has experience successfully arranging mortgages for people who work in the same role.

Using our free broker-matching service you can speak straight away to the right mortgage broker by simply making an enquiry online. They’ll be able to help with:

• Downloading all your credit reports. You can start your free trial by clicking on the link and getting access to your records straight away. Your broker can then help optimise these reports to remove any inaccuracies or outdated information.
• Finding the right lenders. Rather than applying to as many mortgage lenders as you can and face avoidable rejections, your broker will identify those who have a track record of taking a positive approach towards mortgage applications from taxi drivers
• Gathering your paperwork. You can save time during the process by getting all your documentary evidence together in advance, with self-employed accounts dating back three years, for example

Lenders and requirements

The eligibility criteria for a taxi driver mortgage are the same as any other, with the only notable difference being the evidence of income that you’ll need to supply.

Here are some of the major lender’s requirements of the major mortgage providers and how they affect your application.

• Nationwide will need to see either an accountant’s certificate for the last two years or your SA302 (your official HMRC tax calculation) for the last two years.
• Santander will need to see an accountant’s certificate or SA302 for two years within the last 42 months, and three months of recent business bank statements. Applicants must have been self-employed for over two years, and won’t be able to borrow more than 90% of the property value.
• NatWest will need to see an accountant’s certificate or SA302 for the last two years. If profits are rising, they will base your lending amount on an average of the two. If profits are falling, they will base it on the most recent figure.
• Halifax will need to see an accountant’s certificate or SA302 for the last two years and will typically cap your lending based on the lower of the two figures.
• TSB will usually need to see an accountant’s certificate or SA302 for the last two years but can potentially consider just one year’s accounts.
• HSBC will need to see your SA100 tax return submission and SA103 supplement for the last two years plus the latest three months of business account bank statements.

Are you a taxi driver or private hire company looking to take card payments?

Our partners, Merchant Advice Service, specialise in helping businesses and individuals in taking card payments. To get the best deals taking card payments in taxis, get in touch with them today. They can help you beat your current rates, help you get the right card payment machine including contactless, set up a merchant account and even help with online booking apps.

Get matched with a broker who specialises in taxi driver mortgages

We work with numerous brokers who specialise in mortgages for the self-employed, some of whom have a strong track record helping cab drivers get approved for the finance they need. They can help with every aspect of your application, from which paperwork you need to supply to how to report your income if it fluctuates over time.

If you’d like to speak to a mortgage advisor who understands your situation, try our free, broker-matching service and we’ll set up a no-obligation chat. Just give us a call on 0808 189 2301 or contact us online.