Freelancer Mortgage Advice

Freelancer Mortgages Explained

A freelancer is a self employed person who works for different clients and different projects. As such, you might be wondering what the process is for a mortgage application. And how to package your income in order to demonstrate to the lenders how much you truly earn.

Often the way you get paid means that high street lenders won’t consider you for mortgage applications. Whether you are a Copywriter, Web Developer, Designer, Marketer or Virtual Assistant as a specialist mortgage broker, we can help.

You might be worried about the following:

• My income was impacted by the Pandemic and I have gaps in my employment
• The amount of income I earn fluctuates over time
• I have been declined for a mortgage by a high street lender
• I’m unsure how to present my income to a lender

Whatever your concern, our expert advice is here to support you. As a Freelancer, it can be more challenging to apply for a mortgage but by no means impossible.

We know what documents you need to provide to the lender to prove your affordability. We have relationships with specialist lenders who are more likely to accept applications from Freelancers. We also know how to package your income to maximise the likelihood of a successful outcome.

By using an experienced mortgage adviser like us, we can help guide you through this whole process and help make it as stress free as possible.

Contact us today for Mortgage Advice for Freelancers.

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Do I need a different type of mortgage as a Freelancer?

There is no specific Freelancer mortgage. However the way that you apply for the mortgage and the way the lender assesses your income will be different from other employed people.

The type of mortgage product you consider is also important. You may also want to look at an Offset mortgage or a mortgage with greater flexibility to take payment breaks. This will take advantage of the fluctuations in your pay. For example, it might be useful for you to overpay or underpay or even take a payment break.

When it comes to your mortgage application, the mortgage lender will want to see evidence that you earn enough to be able to afford the mortgage. The way you do this will be different from most self employed people as you will work for different clients and your income might fluctuate over time.

You need a broker who can find you a lender that is sympathetic to the way that Freelancers work.

It depends on which lender you choose as to how they calculate your affordability. Generally, they will take an average of your income over the last two or three years. But they can take other factors into account as well.

To prove your income when you apply for a Freelancer mortgage, you will generally need to provide 2-3 years of accounts. The lender will then generally take an average over that period.

At Your Mortgage Expert, we can help pull all this documentation together and ensure the lenders have all the information they need. We can also give advice if you only have 1 year of accounts or have recently set up your company. We can also look at different mortgage products which enable you greater flexibility.

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