Mortgage options for freelancers
Your property may be repossessed if you do not keep up repayments on your mortgage.
Freelancing and Mortgage Eligibility
Freelancing typically involves short-term work contracts rather than long-term employment. Unlike self-employed tradespeople with regular jobs, freelancers often work under contracts with set terms, such as six months or two years. Examples of freelancers include IT professionals on fixed-term contracts or journalists working with different publications. To qualify for a mortgage, most freelancers need to demonstrate at least two years of consistent work history in their field or under contracts. While the criteria vary across lenders, the key is proving stable and sustainable income through documentation like contracts or employment history.
Can you get a mortgage as a freelancer? How hard is it?
Yes, you can. A freelancer isn’t a term that we use very often in the mortgage industry. I actually think of a journalist when I hear the term freelancer – but it could describe an IT contractor, a teacher or many other things.
It’s usually someone working on fixed-term contracts: short-term, freelancing contracts. It’s not hard to get a mortgage as a freelancer as long as you’ve got the right paperwork.
What types of mortgages can I get if I’m a freelancer?
There’s no difference. Everything’s available as long as you can prove your income. The underwriters are looking for longevity. If you’re taking a 25 year mortgage, they want to make sure that that income is going to be sustainable.
If you’re a First Time Buyer, you’ll have access to the same mortgages as a First Time Buyer who’s employed, or a self-employed First Time Buyer who is a joiner or a bricklayer… Any differences are going to come down to your deposit and your individual circumstances, such as credit history.
Preparing for a Mortgage as a Freelancer
Freelancers have access to the same mortgage products as employed or self-employed individuals, provided they meet the lender’s criteria. To strengthen your application, maintaining healthy and consistent bank statements is crucial. Lenders will look for steady income deposits and assess your financial management, such as avoiding overdrafts. Separating personal and business accounts can also make it easier for lenders to evaluate your finances. Ensuring your paperwork is well-organised, including tax returns, contracts, and bank statements, will demonstrate financial stability to mortgage underwriters.
Overcoming Challenges as a Freelancer
Freelancers with bad credit or irregular income may face additional scrutiny, but options still exist. Specialist lenders often consider applications with credit blips or inconsistent earnings, especially if explanations for past financial issues are reasonable.
Freelancers can also boost their chances by maintaining timely bill payments, setting up direct debits, and working with a broker who understands their unique circumstances. Brokers can help identify lenders who are flexible with freelance income and guide you through the application process to maximise your approval chances.
The Role of a Mortgage Broker for Freelancers
A mortgage broker is an invaluable resource for freelancers navigating the complexities of mortgage applications. They assess your individual situation, provide tailored advice, and help organise necessary documentation. Brokers also bridge the gap between lenders and freelancers, ensuring applications meet lender requirements. Whether you’re transitioning to freelancing, considering a joint mortgage, or exploring Buy to Let options, a broker can offer personalised support and expert guidance at every stage of the mortgage journey.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Most buy to let mortgages are not regulated by The Financial Conduct Authority
Vulnerable Customer
We understand that from time to time our clients may find themselves dealing with circumstances which could mean they are potentially vulnerable. For example, a change in health, caring for a family member or coping with the loss of a loved one. There are many different types of vulnerability, and what makes one person vulnerable might not affect someone else. When we are vulnerable, our need for financial advice may change. However, admitting vulnerability or seeking help can sometimes feel hard.
If this is something you would like to discuss with us, please ask for a copy of our support guide or download a copy here. This guide is designed to help explain vulnerability and the ways in which we might be able to support you. If you feel any of the circumstances in the brochure apply to you, please talk to us.
Joanne Gerrard2024-10-25A fantastic professionaland supportive service, providing timely, factual and relevant information. Appletree have made the process hasslefree and stressfree. Would 100% recommend.
Ashley Capstick2024-10-01Kathryn has been amazingly helpful with sorting out our Mortgage. Very responsive & insightful. Highly recommend
m r2024-10-01We have just used appletree for switching mortgages. Kathryn and Faye were both very helpful. Faye in particular was very helpful with dealing with a rather difficult solicitor and getting updates and moving things along, Thanks.
Emma Astley2024-09-26highly recommend!!! Kathryn was very helpful and responded very quickly. will definitely recommend Appletree Financial solutions to all my friends and family.
Martin Shipway2024-09-17I recommend Kathryn Haycock to anyone who requires advice and assistance with a mortgage. She is exceptionally efficient, helpful and diligent. Her level of communication with the client is fantastic and she goes the extra mile to make sure that the client gets the best deal possible!
Karen Holden2024-09-10Brilliant staff very professional and extremely helpful Mark has been fantastic, can't rate the team highly enough 5*
Nikolai Polakovs2024-09-08Kathryn at Appletree was so helpful with me and my partner we got recommended by someone she gave us brilliant advice on what to do next thankyou Kathryn.
Lyndsey Goo2024-08-28Kathryn took all the stress out of our remortgage and helped us understand the rates and options so we could make the best decision for us! Highly recommend
amy crook2024-08-06We have been with Apple Tree for around 5 years now, for finical advise, investing and loans. The team are lovely and always have a great response time either by email or phone.
