Specialists in mortgages for different income types
No impact on credit score
5 Star Rated
Financial Conduct Authority
There are a million ways to make a living, but not all of them are acceptable to mortgage lenders … or so you thought.
Here we will look at the various income types for mortgages that you may not have considered viable for a mortgage.
The main criteria for lenders is that any income declared is both sustainable for the life of the loan and is enough to make mortgage payments.
These could include salary and wages, bonuses, commission, shares, allowances, dividends etc.
We’ll also touch on mortgages for those who rely on benefits of one sort or the other.
The following topics are covered below...
People who are self-employed have the possibly the widest range of ways in which they are paid. This includes freelancers with multiple clients, contractors with a single client, gig workers, business owners and company directors. For all the ins and outs on self-employed incomes and how they relate to mortgages, just click this link.
These can include doctors, teachers, architects, senior civil servants, armed forces personnel, nurses and many more. Pay can increase significantly as they rise higher in their careers. Some lenders may take in to account ‘future earnings’ when considering a mortgage application. For more info on different professions click here.
Most lenders require at least 3 months worth of payslips before considering a mortgage application. Some may accept less time in employment and a few could accept even less if an iron clad employment contract could be produced. More info on getting a mortgage when starting a new job.
There more people on zero hours contracts than ever before. While many believe they can fulfil financial commitments such as a mortgage, the automated processes that many lenders use usually do not take into account such circumstances. There are a few lenders who will consider zero hours contracts, and the advisors we work with know who they are.
Lenders are more concerned with your ability to service the loan, than how many hours you work. So if you have the income and a suitable deposit, there shouldn’t be a problem in obtaining a mortgage. More info on part time jobs can be found here.
Most lenders will want to see that you can make your monthly repayments over the course of the loan. Some are happy with certain types of temporary worker, such as doctors and IT workers. Remember that all lenders are different and may take applications on a case-by-case basis. More info on mortgages for temp workers.
A fixed income covers a number of scenarios, including pensions, and many are considered an acceptable risk to a lender.
Others include securities, which is a type of investment where the issuing company is required to pay the recipient a fixed amount on a certain date.
There are a number of lenders who will consider an application from an individual on a fixed income and whether you could be eligible for a fixed income mortgage, is dependent on a number of factors –
There’s some good news if you’re in receipt of disability benefits, because there are a few lenders who are more than happy to accept disability benefits as income when it comes to applying for a fixed income mortgage.
To mitigate any additional risk of benefit income vs earned income, some will cap lending to a certain % of your income, so for example @ 75%, if you receive £20,000 in benefits, they will allow you to apply as if you are earning £15,000. We work with a number of advisors who are experts in this area and they will work with you to try to achieve the best possible deal.
Variable income can cover a whole range of jobs and professions, from those on low income with high commission (this may include people in the car sales industry), those on zero contract hours or freelance contractors on variable hourly rates. Lenders will look at your application as a whole and look at your income record as well as your possible future income to meet mortgage criteria
If you really want to see how good the advisors we work with are, then ask them about getting a mortgage with no income.
Few lenders will look at a mortgage with no income, but there are some exceptions.
You may be an experienced landlord or someone with high net worth, but no income. You’d have to prove you have huge stash of cash lying around to show you can service the loan until you get a job or other income stream.
Every mortgage lender in the UK now has the responsibility to ensure the borrower can afford the loan, so all will make some form of “check”.
That said, there are certainly some lenders that are much more flexible than others when it comes to acceptable types for instance:
There are a variety of reasons why someone might want a mortgage with no current income, and a number of lenders happy to consider justification on a case by case basis.
If you’re reading this and want to know if you’ll be approved, make an enquiry and one of the specialists will give you the best advice.
In its simplest form, a Limited Liability Partnership does what it says on the tin. An LLP allows you to be in a partnership without risking your own assets.
For taxation purposes, an LLP pays no corporate tax, instead each member is treated as self-employed (many law and accountancy firms are set up as LLP’s), and so members will need to prove income just like any other self-employed individual.
This means many lenders will require 3 years of accounts, although some will require as little as one or two years accounts and a few less than 12 months subject to certain criteria. Buy to let mortgages for LLP’s are usually available from lenders who also arrange BTL through a Limited Company.
In most cases the lending criteria is pretty much identical. We work with specialist advisors who can help you find a lender who will consider an LLP mortgagee, including re-mortgages and ‘buy to let’ mortgages for LLP’s.
A trust is usually set up to manage assets such as money, investments or property. The first thing you need to do is find out if the trust has the authority to borrow money for a trust fund income mortgage, which is not always the case.
A trust income mortgage is an excellent way of getting your child onto the property ladder (and you could save a lot of money in rent in the long term). It’s also an opportunity to be able to avoid capital gains tax and inheritance tax, so it’s a good financial decision for all parties.
Someone will have to act as trustee to manage the trust and the trust income for the mortgage. So, what is a mortgage trustee? Simply put, the mortgage trustee definition is someone who manages the trust on behalf of, and for the benefit someone else.
Lenders tend to distrust trusts (if you’ll excuse the pun) because there is a lack of personal liability, so if you’re using trust income to qualify for a mortgage, it is common for someone to act as guarantor for the debt.
The short answer is yes. If you are receiving a regular income from a trust, then that can be considered as income for a mortgage. There are lenders who will accept 100% of income from a trust fund.
Of course the usual criteria apply and you may be asked to provide tax returns for up to three years. Again, your level of income, ability to service a mortgage, your deposit and credit history will all play a part.
As a trust income mortgage is such a specialist area, you’ll need help from one of the advisors we work with to ensure you get a positive outcome.
Apprentices are often paid a notoriously low wage as the company employing them see them as an asset for the future, rather than a fully productive employee from the word go, so the question is, can an apprentice take out a mortgage?
If you, or your son or daughter, are looking for a mortgage on an apprenticeship, there are a number of criteria that a lender will take into account.
If you’re a trainee, mortgage providers will also look at a similar set of criteria and tend to look at each case individually. So, if you want to know, can I get a mortgage being an apprentice?
The best course of action is to sit down with a mortgage advisor – not just any mortgage advisor, but one of the ones we work with who specialises in this area. It could mean the difference between getting a mortgage as an apprentice or not.
An NHS bursary is a monthly payment made to students to help with living costs and tuition fees. The beauty of these payments is that they are not affected by income tax or national insurance payments, so all of the amount paid is available (apart from some private bursaries in certain scenarios).
As usual, many lenders have different criteria and can look at each NHS bursary mortgage application on an individual basis.
The factors that would be taken into account include –
We believe that as a vital NHS worker, you shouldn’t be disadvantaged when it comes to owning your own home, so we’ll put you in touch with one of the best advisors we work with who will do everything in their power to try to get you the best mortgage on the market.
Yes, it may be possible to get a mortgage on benefits, though it depends on your circumstances, how well you meet the mortgage lender’s criteria, and if you can afford the repayments.
Mortgage providers will also check how much income you receive from benefits versus a salary/retirement income (if applicable) and the total combined amount.
Many mortgage lenders will accept government benefits and could consider the following benefits:
However, some lenders will not accept any form of state or employer benefits towards your income when assessing a mortgage application.
The advisors we work with have access to the whole market, and as an experienced broker, they will know the ins and outs of which lender accepts what types of income. Call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry. Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.
You cannot get help with getting a mortgage to buy a home, but if you already own a home, you may be entitled to help with the mortgage interest.
There are a few lenders who will accept pensions or Disability Living Allowance (DLA) as income when accessing your ability to service a mortgage. Other benefits may count towards overall income on a lender by lender basis.
There are some lenders who will consider an application from someone on certain kinds of benefits. Talk to one of the advisors we work with who specialise in this area.
While many lenders don’t consider child support to be part of your income, there are a few that will take it into account.
Yes, some lenders accept up to 100% of maintenance income. It will depend on the lender and you would generally need a history of maintenance payments to be considered, or a court order for them to be paid.
The age of the children is also a factor, as some lenders will only lend if the children are under a certain age, to ensure the benefits are likely to continue for a reasonable period of time.
Disability Living Allowance (DLA) is considered income by quite a few lenders when it comes to applying for a mortgage. The usual criteria would apply and remember, if you meet their conditions, they cannot refuse you a mortgage because you are disabled.
While some lenders won’t accept tax credits, there are a few lenders who will accept tax credits as income. This can vary, with some lenders accepting 100% of the credit toward income, while others can cap it at 60%.
There are lenders that accept tax credits as income for a mortgage. You’ll need to provide bank statements or letters from the relevant government organisation to substantiate your claim. Talk to one of our advisors to find out your best options and which lenders will suit your circumstances in regard to mortgage tax credits.
Getting a mortgage with little/no income evidence is often a problem faced by the self-employed or those on contract work. The days of self-assessment of income are long gone, but that doesn’t mean that there aren’t lenders who would consider your application.
There are various people able to borrow now in all manner of circumstances, such as newly self-employed, temporary workers, and contractors on day rates. There are even mortgages for professional gamblers. Talk to one of the mortgage experts we work with to see what your options are.
If you work in the gig economy (also known as freelance or contract work) it can be a bit trickier but the advisors we work with specialise and understand this type of self-employment, there are gig worker mortgages available the lenders will just want to see your accounts or consistent contracts.
Many lenders are happy to consider different types of benefits as mentioned above and if you have income from employed or self-employed work as long as you can evidence the income there may be some lenders available to you who will use both to help improve your affordability for a mortgage, you can read more about low income mortgages in our guide.
Yes, this is possible but you will almost certainly need a specialist lender for a complex application like this. Some lenders consider applicants whose main earnings are in US dollars, Euros, Australian dollars and many other currencies.
You can read more about this topic in our guide to getting a UK mortgage based on foreign income.
Ask a quick question
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.
Ask us a question and we'll get the best expert to help.
*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.
Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.
Maximise your chances of approval, whatever your situation. Find your perfect mortgage broker
Our broker matching service will match you to a real human being who’s a specialist in your circumstances – for free!
Your expert will find you the best deal that’s right for you and be with you every step of the way.