Mortgages for agency workers

Mortgage lenders base all their decisions on risk. The ‘higher risk’ you are, the less likely they are to lend to you.Lenders have to carry out various checks to make sure you can afford to make the repayments – this includes checking your employment history from the last 12months and evidence of your regular income. 

It’s providing this proof that can make things tricky for an agency worker, as you’re likely to have fluctuations in your income. Working with a specialist mortgage broker is important because they’ll consider your options and find you a lender who’s likely to accept you. They’ll also help you put together a really great application and find the best mortgage for your needs.

Yes, you can get a mortgage on a fixed-term agency contract! But the process can be a little more complex. Some lenders look at some fixed-term contracts more favourably than others - which can be frustrating. 

For example, sectors such as teaching and medicine are seen as in-demand professions and therefore lenders see a fixed-term contract in those industries as less ‘risky’, whereas they might be less favourable towards a seasonal worker on a short-term contract.

Most lenders want a guarantee you’ll have a regular stream of income to meet your monthly repayments. But this viewpoint is changing. With the upward trend in casual contract work, there’s now more lenders than ever that specialise in this field. This means with the right approach, the chances of getting a mortgage are higher than they’ve ever been.

A key part of getting any mortgage is showing lenders you’re ‘low risk’. We know this is harder on a short-term contract, so here are some tips:

• Offer a larger deposit: A bigger deposit means lower risk.

• Show them your detailed employment history: You may have been with the same company or sector for the last few years. This can show lenders your employment is safe and expected to continue.

• Show lenders your earnings: Being on a zero-hour contract doesn't mean you don’t earn good money. You may also have some savings in the bank. This is your opportunity to show lenders you’re a savvy saver and can afford to pay back the loan.

Whatever contract you’re working on we’ve got a specialist broker who can help. Make an enquiry to speak to someone who understands your situation.

As with any mortgage, lenders will look at a wide range of factors. They’ll look at the type of contract that you’re on, whether it's fixed-term or temporary, as well as whether your contract has recently been renewed, as this could be an indicator to them that it will be renewed in future. They’ll also look at the length of your current contract and the longer your contract is, the better.

You’ll need to provide evidence of a steady income, usually over the last twelve months. You may also need a reference from the agency confirming that you have been employed on that basis for the last twelve months too.

Having a bad credit score can reduce your option for getting a mortgage, but it’s still absolutely possible. It’s just a case of working with a specialist broker who can get you the right mortgage from a specialist lender. The lender will weigh up your circumstances on a case by case basis.  For example, if you’ve simply failed to make a few payments over the years, then you’ll have a much better chance of securing a mortgage as an agency worker than if you have been declared bankrupt at any point.

Read more in our Guide: How to Get a Mortgage With Bad Credit.

A temporary agency worker is someone who’s employed by a client for a fixed period of time and paid through payroll (PAYE).

There are a few different types of contractor, for example, you could be a self-employed contractor, or be paid through an umbrella company. But generally a contractor usually doesn’t have an employee/employer relationship with the client – they’ll complete the work as per a brief over an agreed period of time for an agreed fee.

Read more in our Guide: Can I Get a Mortgage as a Contractor?