Mortgages for Freelancers

Being a freelancer shouldn't stop you getting the right mortgage. Becoming a freelancer takes guts! The freedom, flexibility and financial benefits it offers can be priceless, but it does come with some difficulties, including getting a mortgage.

A freelancer or someone who is self-employed does not have a regular income like an employee, their pay/salary will fluctuate from month to month, which can make it difficult to secure a mortgage. As a freelancer, you can make getting a mortgage as hard or as easy as you like. For sure, you can go to the High Street/Call Centre route. If you've tried already, you'll know the difficulty you face as a specialist borrower. 

Mortgages for freelancers

Routes to getting a mortgage as a freelancer

If you insist on going the traditional route, prepare yourself first. You'll face rejection, ludicrous and offensive offers and a ravaged credit file at the end of it. All with no guarantee of a mortgage, let alone one that reflects what you can truly afford.

Or, you can go with the smart, tried and tested route. Namely, speak to someone who understands freelance income and the freelancer lifestyle. More importantly, someone with a direct line to underwriters willing to accept a short-term contract as proof of income.

Freelancer Financials have been helping freelancer secure mortgages since 2005. Their expertise doesn't stop at knowing what lenders will and won't accept your application. They've been instrumental in helping banks and building societies develop tailored contractor mortgage lending criteria.

The Freelancer Financials' difference:

  • Wholly independent, with access to all freelancer-friendly mortgage lenders
  • Have helped banks and building societies devise their contractor lending criteria, so know precisely what to look for
  • Have been successfully getting mortgages for contractors since 2004
  • We understand freelancing, so can interpret freelance income to mortgage lenders
  • Borrow up to 5 times your annualised contract rate, subject to status
  • We can often use just your current contract, an up to date CV, 3 months' bank statements and proof of ID to get you a mortgage

All that said, the biggest difference is that we get to know you. Your situation, career status and ambitions - they all should play a part in your mortgage choice. You should not be penalised for being a freelancer, and Freelancer Financials can help with that.

Thinking about buying a property? Or ready to put in an offer? Speak to one of our specialist advisors today by completing this form.

Your free mortgage consultation

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Tips for freelancers looking to get a mortgage

1. Ensure your cv is up to date

Make sure you have a copy of your most recent cv to hand when putting together your mortgage application. It’s important to be able to show lenders not only how much income you have, but also how long you have remaining on your jobs.

2. Avoid lengthy breaks between jobs

There are many perks to working as a freelancer, not least being able to take breaks between jobs should you wish to. This is great for holidays or similar. However, you should try and avoid taking breaks of anything more than 6-8 weeks. This is because lenders want to see consistent income and contracts stretching back 12-24 months prior to your mortgage application – long gaps between receiving income payments are not viewed favourably.

3. Be realistic about your repayments

A common mistake many professionals make when searching for a freelancer mortgage is being unrealistic when it comes to estimating their repayments. It’s really important when putting your mortgage application together that you make sure the repayments you commit to are going to be affordable for you.

4. Have at least a 10% deposit

Most lenders will require you to have a good-sized deposit when you apply for a freelancer mortgage. Not so long ago it was possible to secure a mortgage with just a 5% deposit, but those days are gone now. Ideally, you should aim to have at least a 10% deposit ready to pay upfront.

5. If suitable, look for mortgages that allow additional payments

Some freelancers may find themselves with more money than they need on a regular basis thanks to high-value or frequent jobs. If this sounds like you, you should try to find a mortgage that allows you to pay chunks off in addition to your regular monthly repayments. This will enable you to take maximum advantage of your position and pay-off more of your mortgage quicker.

More on getting a mortgage as a freelancer