Can You Get a Mortgage as a Temporary or Agency Worker?
Getting a mortgage can feel like a challenge, especially if you’re on a temporary contract or working through an agency. But don’t worry, it’s not impossible! Let me walk you through what you need to know and how you can boost your chances.
What Do Lenders Think About Temporary Contracts?
Lenders tend to look for stability in income, so temporary or agency work can make them pause. But it doesn’t mean they’ll say no! Here’s what they’ll look at:
- Your Work History: If you’ve got a solid track record, even with short contracts, that’s a big plus.
- The Type of Job You Have: Some industries (like healthcare or IT) have loads of temporary roles that lenders trust.
- Contract Renewals: If you’re likely to stay employed or renew contracts, that’ll help your case.
By showing lenders you’re financially stable, you can overcome any concerns about your work situation.
What Paperwork Do You Need?
When you’re in temporary or agency work, proving your income is crucial. Here’s what you’ll need to gather:
- Payslips: Recent ones—think three to six months.
- Bank Statements: To back up what’s on your payslips.
- Tax Returns: Especially if you’re self-employed or a contractor.
- Contracts: Showing your work history and what’s coming up next.
- References: A letter from your agency or employer confirming your employment status.
Keeping these documents organised can make your application go smoothly.
Who Are the Best Lenders for Temporary Workers?
Not all lenders cater to temporary or agency workers, but don’t let that discourage you. Some specialist lenders are much more flexible and take the time to understand your situation. They’ll look at things like:
- How long your contracts last and whether they’ve been renewed.
- Whether you’ve got a steady income flow.
- Your credit history and financial health.
Working with a mortgage broker can help you find these lenders and get the ball rolling.
How Can You Improve Your Chances of Getting Approved?
Here are some straightforward steps to make your application shine:
- Keep Your Credit Score in Check: Pay your bills on time and avoid taking on unnecessary debt.
- Save a Bigger Deposit: The more you can put down, the better your chances.
- Stay on Top of Your Finances: Avoid overdrafts and keep a bit of savings aside.
- Have Your Paperwork Ready: Lenders like to see everything laid out clearly.
- Get a Good Mortgage Broker: Someone who understands temporary work can make a huge difference.
- Consider a Guarantor: If a family member can back you up, it might help seal the deal.
What Are the Common Challenges for Temporary Workers?
Here’s what you might come up against and how to handle it:
- Higher Interest Rates: Specialist lenders sometimes charge more. Improving your credit score and saving a bigger deposit can help.
- Short Work History: If you’ve just started temporary work, try to wait until you’ve got at least 12 months of contracts under your belt.
- Paperwork Overload: A mortgage broker can help streamline this for you.
How Did Jane Get a Mortgage While Working in Temporary Roles?
Jane’s Story:
Jane is an agency nurse who works on short-term contracts. She worried she wouldn’t qualify for a mortgage, but here’s what she did:
- Got Her Documents Ready: Payslips, tax returns, and a letter from her agency were all lined up.
- Found the Right Lender: With help from a broker, she went to a specialist lender who understood her job.
- Put Down a Bigger Deposit: She saved up 15%, which helped reduce the risk for the lender.
With everything in place, Jane got her mortgage approved and moved into her new home without a hitch.
Why Should You Use a Mortgage Broker?
A good mortgage broker can save you loads of time and stress. Here’s why:
- Access to Specialist Lenders: They know who’s likely to say yes.
- Expert Advice: They’ll help you gather what you need and guide you through the process.
- Time Saver: Let them deal with the paperwork while you focus on your day job.
FAQs: Got Questions? We’ve Got Answers!
- Can I get a mortgage with less than a year of contract history? Some lenders might be okay with this, especially if you can prove consistent income.
- Do all lenders accept temporary workers? No, but that’s where specialist lenders and brokers come in.
- Do I need a guarantor? Not always, but it can help if your financial situation needs extra support.
- Are interest rates higher for temporary workers? Sometimes, but you can lower them by saving a bigger deposit or improving your credit score.
So, Can You Get a Mortgage as a Temporary Worker?
Absolutely! It might take a bit more effort, but with the right preparation and support, it’s doable. At Mortgage Bridge, we’ve helped loads of people in non-standard jobs find the right mortgage. Let us help you, too. Get in touch today!.