Can agency workers get a mortgage?
Yes, agency workers can get a mortgage. However, it may be more difficult, compared to someone in traditional employment.
One problem with this type of work is that there is not the same level of job security as a permanent employee. This means workers monthly income may not be guaranteed. Lenders tend to prefer borrowers who have a stable income, as it means they may be less likely to miss repayments.
That said, there are still solutions available to these type of workers. However, there may be fewer options and interest rates may be higher if lenders have concerns.
Our experts have helped many agency workers make their property dreams a reality. So if you’re having problems getting accepted on the high street, we may be able to help you.
What is an agency worker?
An agency worker is a type of temporary employee. They are usually employed by a recruitment agency and then hired out to work for a specific client. These workers are often used to cover a short-term rise in workload.
The recruitment agency is responsible for employing the worker and paying their wages and taxes. The client is responsible for overseeing them on a day-to-day basis and makes sure they have a safe working environment.
Agency workers can be found across many industries. This can include teaching, healthcare, waiters, sales assistants, labourers and more.
The main benefit of this type of work is the flexibility it offers. With this work, you can often choose your own hours and pick the roles you’d like to take on. This can make it easier to balance work with other commitments like university or childcare. It can also offer higher rates of pay in some industries.
However, they have less job security than permanent employees, as their contracts may be shorter and can be subject to change. Plus, there is a risk that their income can be unstable and uncertain, causing financial stress.
It's important for individuals to weigh up the benefits and negatives when considering it as a career option.
Why is it more difficult to get a mortgage as an agency worker?
It can be more difficult for a few reasons including:
Lack of job security - Agency workers may have less job security than permanent employees. Lenders may view this as a higher risk, so they may be more hesitant about lending to these people.
Inconsistent income - As agency workers often work on a temporary basis, their
income may be less consistent. Lenders will typically require evidence of regular income over a period of time before approving a mortgage, which can be harder for these workers to provide.
Limited employment history - Some lenders may require a minimum period of employment
before approving a mortgage. This can be challenging for agency workers who may move between different employers and roles frequently.
Overall, these factors can make it more challenging for agency workers to get approved. However, it's worth noting that there are specialist mortgage lenders who work specifically with these workers. They usually have more flexible lending criteria, so they may be more willing to help.
How to improve your chances of being approved for a mortgage?
There are some steps you can take to try and boost your chance of approval. These are:
Improve your credit score: Your credit score is one of the key factors that lenders consider when assessing your application. You can take steps to improve your credit score by paying bills on time and making sure that your credit report is accurate.
Provide evidence of regular income: It's important to try and provide evidence of regular income over a period of time. This could include contracts and payslips from several employers, and/or tax returns over the years. You may be able to work with a financial advisor to help you organise this information.
Consider a joint application: If you're buying a property with a partner or family member who is in permanent employment, this may strengthen your application. Applying with someone else can raise the total income of the application and may mean you are more likely to be approved.
Work with a specialist mortgage broker: A mortgage broker who specialises in working with agency workers may be helpful. They may be able to find a lender who is more likely to approve your application. Going to a broker may however mean you have to pay extra fees for the work they complete. Whereas, if you go directly to a lender, you would only need to pay the lender’s fees.
For more information on how to boost your chance of getting a mortgage, you may want to read our blog; ‘How to improve your chances of getting a mortgage.’
How do I apply for a mortgage as an agency worker?
Our experts are committed to helping customers get the solutions they need, even if they have been rejected elsewhere. So we may be able to help you.
Our process is straightforward. Here's how it works:
- Contact us: You can call us on 0800 032 4646 or use our online form above and we will call you. When you speak to our experts, they will ask a few questions to understand your situation.
- Let us do the work: We will search our database of lenders to find the best options we have available for your specific situation.
- Get your solution: If we can find an appropriate option, we will get in touch to present the solution we have found. If you want to proceed, we can assist you in getting your application finalised.
Before you take out this solution, it’s worth thinking carefully about whether you can afford it. If you struggle to make repayments, it could put your property at risk of repossession so always think about this carefully.
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