Many UK workers are now opting for freelance work due to greater flexibility in their working life. Working for yourself can have many advantages, allowing you to choose when and where you work.
According to Statista, there are 4.29 million self-employed workers in the UK, with many of these working on a freelance basis.
Finding a mortgage can be time consuming and tricky without the right advice, particularly if you work for yourself as your income can be less predictable.
As experts in freelance mortgages, we know which lenders are the best choice and can help freelancers find mortgages with excellent rates.
About freelancer mortgages
There are many great options available when it comes to freelance mortgages, you just need to know where to look. Many lenders can offer excellent deals for people who are self-employed.
With self-employment being so common in the UK, lenders will have dealt with many freelance workers and will have a standard process for assessing your income.
When it comes to freelancers, lenders will likely ask questions such as:
- How long have you worked on a freelance basis?
- Can you provide proof of your income?
- Do you have an accountant and up to date accounts?
- Do you have any other forms of income? (e.g. dividends and investments)
These questions aren’t a cause for concern, they just help lenders to get a full picture of your finances.
Each lender will have slightly different criteria when it comes to lending. It is worth getting advice from an experienced broker with a good understanding of how lenders assess income for self-employed mortgages.
Learn more about getting a mortgage when self-employed.
Can freelancers get a mortgage?
Freelancers should definitely be able to find a mortgage deal that works for them. It just may be helpful to speak to an advisor before applying, to be sure you are looking at the best lenders for your occupation and finances.
There will be some lenders that are better suited to lending when it comes to freelance mortgages, and we can help you find the best deals with the most affordable rates.
Getting a mortgage as a freelancer
As freelancers generally hire their services out to other businesses or individuals, income can vary from one month to the next depending on job availability.
You may have some months with multiple ongoing projects and others that are far quieter.
This can make it more difficult for lenders to assess your overall average income.
It can be extremely beneficial to have advice and support from an experienced broker who has helped buyers in your situation before.
As mortgage specialists with years of experience, we can help you find the right lenders who will be most likely to approve an application with more complex income.
How do freelancers get a mortgage?
You can apply for a freelance mortgage in the same way as any other buyer would apply. Do some research and decide what type of mortgage you need, the type of interest rate you want (fixed rate or variable rate), and your budget.
It is important to be sure you take out a mortgage with repayments you will find affordable long term. You don’t want to risk defaulting on your repayments at a later point.
To learn more about the mortgage application process, speak to our experts or check out our handy step by step guide on the topic.
Best mortgages for freelancers
You may believe that there are far less options available when it comes to mortgages for freelance workers.
It can just take a bit of research to find the right lenders offering the best rates. We can help you compare hundreds of deals across the market, to find the most competitive pricing possible.
Getting advice from someone who knows self-employed and freelance mortgages well can be key when looking for the best rates and lenders.
Mortgages for freelancers with bad credit
With freelance mortgages, income can be more complex for lenders to assess. This coupled with a poor credit history or debt can make getting approved for a mortgage more difficult.
We know that credit issues happen and usually they aren’t your fault. With this in mind, we have partnered with a variety of lenders who specialise in offering mortgages to people with a less than ideal credit history.
Some of these lenders include:
- Accord Mortgages
- The Mortgage Lender
Depending on the level of poor credit you may even be able to get a mortgage through a mainstream lender such as a bank or building society.
Learn more about how we can help freelancers find a great mortgage with bad credit.
Mortgage lenders for freelancers
There are a wide range of lenders currently operating when it comes to UK mortgages. This is good for buyers as it means there are a lot of options to choose from with hundreds of deals available.
Depending on the type of mortgage you require, there may be certain lenders that are more suitable. This is especially true when you also consider they need to be a good fit when it comes to self-employed income as well.
We can help you find the perfect lender for your freelance mortgage and can make the process as easy as possible for you.
How does income work for a freelance mortgage?
Freelancers should be able to get a mortgage from a variety of lenders, if they can meet the mortgage provider’s criteria for lending. When it comes to freelance income, usually lenders will need to see:
- 2 to 3 years of accounts
- Projections for coming year
- SA302 forms or tax-year overview
- Profits and dividend evidence
- 3 months bank statements
- Accountants reference
Lenders may not ask for all of these, or they may have slightly different requirements. They will use these factors to assess you affordability and how likely it is you can afford your mortgage payments.
Make sure to speak to lenders that are best suited to the mortgage type you need as well as your occupation.
Our team can make sure you aren’t wasting any time applying for a mortgage with lenders who may be more likely to decline your application.
Freelance contractor mortgages
A contractor and a freelancer are very similar in the way they work. A freelancer will hire their services out to a business or individual but aren’t tied to this agreement long term.
A contractor will be a worker (often a manual worker like a builder or electrician) who will be employed on a fixed term contract to work for a business temporarily. A contractor may own their own business or be a part of an agency or other business.
The two job roles are often confused but there are differences. Lenders will likely assess income and affordability in the same way though, regardless of whether you would class yourself as a freelance or contract worker.
Learn more about how we can find the best deal for your mortgage as a contractor.
Buy to Let mortgages for freelancers
Buy to let rental properties can be a great investment, with the potential for additional income and profit from renting the property out.
If you wish to take out a buy to let mortgage, there can be slightly different rules when it comes to lending compared to residential mortgages.
It is worth consulting a broker for advice, particularly if this is the first buy to let property you have bought. We know this mortgage type extremely well and have several lenders on our panel that are excellent when it comes to buy to let mortgage rates.
Find out more about buy to let mortgages.
Freelance mortgage advisor
Speak to one of our highly skilled mortgage brokers if you are a freelancer who needs help with their mortgage.
We can compare deals across over 50 of the UK’s top lenders to find the deal best suited to your needs and budget. We will make sure you receive the most competitive pricing possible.
We are experts in helping people who are self-employed buy the properties they want (whether they own a limited company, are a sole trader, contractor or freelancer).