More than 25% of borrowers being denied a mortgage due to non standard income, with just under 50% of customers that have zero hour contracts being turned down.
This doesn’t have to be the case, people that are self employed or work on a zero hours contract are finding it increasingly difficult to get their mortgage application accepted, this is due to the fact that this type of income can be unpredictable, there are not usually standard hours and they do not have a contract that covers them for sickness, maternity and annual leave.
It’s always been more difficult to get a mortgage if you don’t have a standard 9-5 job with a permanent contract, however, specialist mortgage advisors can massively increase your chances of having your mortgage accepted because they will walk you through what you will need to provide the lender, to give them the confidence to accept your mortgage application.
Documents that are frequently requested by mortgage lenders to help them assess the sustainability of income are;
3-6 months bank statements, its important if you are self employed to make sure that cash goes through your business bank account, because if you say you are earning for example £52,000 per year, the lender can check back using your bank statements to see that there is roughly £1000 per week, or just over £4000 per month being paid into that account.
SA302’s, this is your personal Tax Return, it proves to lenders that you are declaring what you are telling the lender you are earning, it also proves you are paying tax on that income. It’s a myth that you need 2 to 3 years tax returns, there are lenders who will accept one years SA302’s for proof of earnings.
Your credit score is important, it shows every credit commitment taken over the last 6 years, it shows how much you currently owe and how you have conducted your finances over the last 6 years. Don’t be put off by the words “Credit Report”, worse case scenario, you are self employed, have poor credit and only one years proof of self employed income, BIG NEWS, THERE ARE STILL LENDERS AVAILABLE FOR YOU.
One of the worst things that any one with non standard income can do when they are looking for a mortgage, is approach lots of different banks and/or mortgage advisors because these could result in multiple credit searches being carried out on you, this will in turn lower your credit score which isn’t the best thing to do if you are looking for a mortgage or remortgage.
We can help, we will help, if for any reason we cant, we will give you a thorough financial overhaul and tell you what to do to help you get your mortgage application accepted as soon as possible.
Goood Luck!