Mortgages for Temps and Agency Workers

Find out how expert advice could help secure the mortgage you need whilst on a temporary contract

Firstly, what is your employment status?

Home Income Types Mortgages For Temps And Agency Workers
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Updated: March 15, 2024

We’ll explain how you can still get a mortgage if you’re a temporary or agency worker, what information mortgage lenders will want to see and why speaking with a mortgage broker is a smart first move.

Can agency workers get a mortgage?

Yes, it’s possible. But, you may find the process more difficult without some expert support and advice. There are lenders out there who can offer mortgages to UK agency workers, but the available pool of lending options will be quite small.

Ideally, the process will be much smoother if you have a fixed-term contract with your agency, and are you able to show evidence of consistent income. There’s no need to worry if your work contract isn’t fixed. If you speak with a knowledgeable broker, they’ll still be able to introduce you to appropriate lenders who can cater to your situation.

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Can you get a mortgage with a casual or temporary job?

This is definitely still possible, but your range of options will depend on your circumstances and the level of income proof you’re able to provide. If you’re a gig worker or operate on a casual, freelance, or temporary basis, it’s worth using all available tools at your disposal to make sure you can borrow the amount you need and still end up with a competitive mortgage.

How to get a mortgage on a temporary contract

Your first step should be to find a mortgage broker who specialises in helping temporary contract workers get onto the property ladder. Make an enquiry with us and we will match you with an advisor who has this expertise for free.

Your mortgage broker will guide you through the following steps:

  • Preparing all the documentary evidence and paperwork required for a mortgage application if you’re a temporary worker
  • Downloading and optimising your credit reports to identify any inaccuracies or outdated information that could hinder your chances of approval
  • Finding the right mortgage lenders who will look favourably on someone working on a temporary or agency contract and securing the best rate available

Step one:

This first step can be particularly important if you’re a UK agency worker looking for a mortgage. Each lender will request a variety of documents, but if you get everything to hand before you begin, it will lead to a much smoother application process and allow your broker to introduce you to the right lender based on the info you have.

Along with standard documents like photo ID, proof of address, and recent payslips – many lenders will want to see copies of your P60 for the last few years. It’s also worthwhile getting evidence of your current and past contracts. The more details you can provide, the better.

Step two:

Lenders will check your credit history during the mortgage application process. The best way to make sure you’re not hit with any surprises is to download all your credit reports and check them for mistakes. Your mortgage broker will also be able to help you evaluate the reports and point out any areas for improving your credit score.

Don’t panic if you’re a temp or agency worker with bad credit, an experienced mortgage broker will still be able to find you a competitive mortgage. This could involve dealing with specific bad credit lenders who are more comfortable with bad credit applicants or exploring alternative solutions.

Step three:

Each contract situation is likely to be very unique if you’re a temporary, casual, or agency worker. The best way to get bespoke advice and find a top mortgage deal is by using a specialist broker. Using a broker who specialises in this area means they have existing relationships with lenders, providing you access to exclusive deals.

The brokers we work with have a proven track record of securing mortgages for clients just like you. If you’d like to be put in touch with a specific agency and temporary worker mortgage broker, just make an enquiry. We’ll introduce you to one for free today.

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Eligibility and affordability requirements

If you want to know some of the important areas for lenders with regard to eligibility and affordability, here’s how your mortgage deal could be affected if you’re an agency worker or are employed on a temporary/casual contract basis:

Affordability

How much you can borrow is largely determined by a multiple of your annual salary or income with the most common being 4.5 times your annual salary. As an agency or temporary worker, it may be the case that your income fluctuates over time depending on the contract. Most mortgage lenders will take an average over a specific period – typically 12 months – to use for this calculation.

But, some can use the most recent earnings or your latest contract if the figures are higher than in the past. You may also be able to include additional income you get from other sources, or alternatively, low-income mortgages are another option you can look into.

You can see how this could work out for you by inputting your average yearly earnings into our calculator below.

Mortgage Affordability Calculator

Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.

Input full salaries for all applicants
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Your Results:

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

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

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Contract length

With some lenders, you’ll need to prove you’ve been under contract as an agency worker for a specified period of time. The minimum is often around 12 months. These timeframes can vary, so it’s worth dealing with a lender that fits your needs.

Contract type

Certain lenders will be comfortable with all types of contracts but some will only deal with fixed-term contracts. Or, they won’t be willing to discuss a mortgage if your contract specifically states that it’s temporary agency work, short-term, zero-hours, you’re currently in a probationary period or seasonal.

Speaking with a lender who can accommodate your particular contract set-up will make the process much more straightforward.

Employment gaps

For the majority of lenders, you’ll need to show evidence that you’ve been under continuous employment through contract work for a set amount of time. However, there are lenders who are more lenient and will permit gaps of up to 6 weeks between contracts.

Loan-to-value and deposits

If you’re a temporary contractor or working for an agency, there are some lenders out there who will only offer mortgages with a maximum loan-to-value (LTV) ratio of around 80%. This means you’d need at least a 20% deposit to qualify.

If you’re not able to save this level of deposit, don’t fret. A skilled broker will still be able to find a mortgage solution with a smaller deposit (but at least 5% – 10% would likely be required as a minimum).

Proof of income

Proving your income can be harder than someone who is employed and can provide regular payslips to confirm their salaried income. Your latest P60 statements and contracts confirming payment details should all be sufficient proof for most mortgage lenders. As stated above, the more information you can provide regarding your earnings, the better.

Mortgage lenders for temporary and agency workers

The lenders available to you will depend on your situation. But to give you an idea, here are some major UK lenders who are open to offering mortgages for agency and temporary workers:

  • HSBC
  • Santander
  • Nationwide Building Society
  • Natwest
  • TSB

If you want to see your full range of options, using an experienced mortgage broker is the best course of action. They’ll be able to show you all the relevant choices from across the UK based on your individual circumstances and type of income.

Speak with a temporary and agency worker mortgage expert

If you’re an agency worker or have some kind of rolling temporary contract for your work, using an experienced UK mortgage broker is the best way to secure a top deal to buy the property you want.

We offer a free, broker-matching service. This means we’ll quickly assess your needs and income type, then pair you up with a specialist mortgage broker.

Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no obligation chat between you and your ideal mortgage broker today.

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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 Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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