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Gig Worker Mortgages

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 23, 2022

Working in the gig economy – otherwise known as freelancing or contract work – can be liberating, but it can be difficult to get a mortgage with favourable terms. That said, there are providers who will consider you, even if you’re at the beginning of your career and have a fluctuating income.

Can I get a gig worker mortgage?

Yes! The advisors we work with specialise in self-employed mortgages and arrange home loans for gig workers every day.

First and foremost, mortgage lenders will want to know which category of gig work you fall into. Broadly speaking, there are three main types of business structures for freelancers in the UK.

The one you fall into vastly determines your chance for a mortgage:

  • Sole trader – The business belongs solely to you.
  • Partnership – This is where you and a partner operate your freelance gig.
  • Limited company – This is a small private company whose owners are responsible for its debts to the extent of the amount of capital they’ve invested. Read more about mortgages for limited company directors in our standalone guide.

Struggling to find a mortgage as a gig worker? Make an enquiry. We will refer you to experts who can help you find a deal that matches your circumstances.

What is the lending criteria for gig economy mortgages?

Once you know the lending criteria for gig worker mortgages, you should have a better idea of whether you’d qualify for one.

Most providers look at the following…

  • Your income: At least two years of consistent, if not increasing profit. Records should be accurate and up-to-date
  • Your outgoings: That your expenses don’t outrank your income.
  • Credit history: Some lenders are cautious when it comes to approving mortgages if you’ve got bad credit but there are bad credit mortgage lenders.
  • The financial history of your business: Make sure you repay all debts and try to straighten out, if any, online negative reviews of you and/ or your business.

Most lenders seriously consider those who’ve been self-employed for at least three years and can show steady earnings. With the help of a whole-of-market broker – like the ones we work with – you may find a specialist lender who will consider offering a self-employed mortgage based on 1 year’s accounts and a projection of future clients or contracts.

Stricter lenders also want to see your line-up of future clients or contracts to make sure you can afford your mortgage repayment. They may also want to see your training, qualifications, references and existing network.

How do I prove my income for a gig worker mortgage?

Aside from the regular documents (passport, ID etc.), lenders would also want to see the following:

  • At least two to three years’ accounts including invoices and business bank statements
  • At most three SA302 forms. All lenders want the most recent tax return, which may mean filing early.
  • Copies of your contracts.
  • An up to date CV.
  • If you’re a limited company, bring your business accounts and balance the books.

Make an enquiry and we’ll refer you to a broker who knows mortgage lenders who specialises in the gig economy.

How do I boost my chances of getting a gig economy mortgage?

You can increase your chances by hiring a certified or chartered accountant to prepare your records and a whole-of-market broker who can offer professional advice.

Note: Make your accountant aware that you plan to seek a mortgage, since your they may try to minimise your taxes which could backfire in this situation.

How is a gig worker mortgage calculated?

Lenders calculate the amount you could borrow depending on what type of gig worker you are…

  • Sole trader: Lenders consider your net income or average income you’ve earned over the last two to three years.
  • Partnerships: Lenders consider the net income of both you and your partner or average the income both of you have earned over the last two to three years.
  • Limited companies: Lenders review your salary and dividends. In some cases, they will assess your salary and the net profit of the company.

If you’re an employed or self-employed contract worker, you can use our mortgage calculator below to get a rough idea of how much you could potentially borrow…

calculator icon

Contractor Mortgage Affordability Calculator

Our contractor mortgage calculator will tell you how much you can borrow, whether you work in an employed or self-employed capacity. Select your trading style below, enter the relevant details about your income and our calculator will do the rest.

The amount of money you earn each month. If it varies, put the average
The amount of money you earn each month. If it varies, put the average
£
The amount of money you earn each day. If it varies, put the average
£
If you don't work the same days a week, put the average

You could borrow up to 

Most lenders would consider letting you borrow

This is based on a multiple of 3-4.5 times your income, a standard calculation used by the majority of UK mortgage lenders. You should speak to a mortgage broker for bespoke calculations if you have been contracting for less than 12 months, your contract is coming to an end, or there is uncertainty around your long-term employment.

This is based on a multiple of 3-4.5 times your income, a standard calculation used by the majority of UK mortgage lenders. You should speak to a broker for bespoke calculations if you’ve been self-employed for less than 2-3 years, have declining profits or fluctuating income.

Some lenders would consider letting you borrow

This is based on 5 times your income, a calculation only some lenders are willing to offer. You may struggle to find a lender who will offer this income multiple to an employed contractor without the help of a broker, and you should seek advice from one regardless if there is any uncertainty around your employment situation.

This is based on 5 times your income, a calculation only some lenders offer. You might need a broker to access this salary multiple and should take advice from one regardless if you’ve been self-employed for less than 2-3 years, have declining profits or fluctuating income.

A minority of lenders would consider letting you borrow

Only a small number of options are available for employed contractors who want to borrow based on this salary multiple. Few UK mortgage lenders offer mortgages based on x6 income under any circumstances, and you’ll almost certainly need the help of a specialist mortgage broker who knows this corner of the market inside out to access them.

Only a small number of options are available for self-employed contractors who want to borrow based on this salary multiple, as few mortgage providers are willing to offer 6 times salary deals. You’ll almost certainly need the help of a mortgage broker to borrow this amount.

Get Started with an expert broker to find out exactly how much you could borrow.

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Can I get a gig economy mortgage with fluctuating income?

Yes. If you’re applying for a mortgage as a freelancer with fluctuating income, your lender will take the most recent year as an indication of your earning capacity and give you a smaller loan. They may use the year with least income as their baseline instead.

How to get a gig economy mortgage

You should kick off your application by making an enquiry here to speak with a whole-of-market broker. The ones we work with have expert knowledge of the gig economy and know exactly which lenders offer the best deals for those who work within it.

You’re more likely to get a gig worker mortgage if you have:

  • A Healthy deposit: Anywhere from 10% to 25% helps. The larger the deposit, the more likely you’ll receive a favourable loan.
  • Show consistency with contracts: The more regular your gigs, the better your chances. Aim to avoid gaps between gigs, at least 12-24 months before applying for a mortgage. Look for long-term engagements and/ or repeat business and regular transactions.
  • Meticulous records: Have all your accounts, paperwork, electronic readers up to date and accurate.
  • Enough income to cover your mortgage: Either cut your expenses and/ or limit your mortgage.
  • A good credit rating 
  • A specialist mortgage broker: These know the ins-and-outs and are close to bankers. Of course, that’s where we come in. We can refer you to experts who may match you to your perfect provider.
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Speak to an expert gig worker mortgage broker

For low-risk borrowers, it’s extremely possible to get a loan on a residential property with as little as 10% deposit.  Moderate risk-borrowers may have a slightly more difficult time.

Regardless of your situation, we can refer you to experts who can match you to lenders that offer mortgages for gig workers.  Call us today on 0808 189 2301 or make an enquiry.

Then sit back and allow us to do the hard work in finding the right mortgage advisor for your situation. We don’t charge a fee and there are no obligations.

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.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*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.

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