Taxi Driver Mortgages Explained

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. If you’re self-employed, with our help, you could be well on the way to buying your own home.

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. Getting a mortgage with bad credit is still possible, 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 article on 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 times and 5.5 times your annual salary, 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. Use the dropdown menu to select your trading style.

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. Most take an average of the last two or three years.

If one of those years was poorer than usual, that calculation method 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 with experience successfully arranging mortgages for people who work in the same role.

Our brokers have experience with all aspects of self-employed mortgages, for expert guidance make an enquiry today

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 immediately. 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 possible and facing avoidable rejections, your broker will identify those with a track record of taking a positive approach towards mortgage applications from taxi drivers.
• Gathering your paperwork. You can save time 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 a 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.

Why Use Online Mortgage Advisor?

No matter your mortgage situation, we’ve got you covered. Our mortgage experts support you from the start to the finish of your application. Our specialists can search the market to find the best deal for you.

With access to hundreds of lenders, your dedicated mortgage adviser can find the best possible mortgage deal for your circumstances. We’re so confident in our service that we guarantee it – if you find a better mortgage deal elsewhere, we’ll give you £100*.

Call on 0330 818 7026 or contact us online for a free consultation, and a member of our team will explain exactly how we can help