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If you are a freelancer searching for a mortgage it is important that you understand the process before making any decisions on a mortgage, as it can be difficult. 

There is an increase in mortgages for freelancers and there are now over 2 million freelancers in the UK and this number is set to increase following the pandemic, according to Martin Alexander.

Each lender has different assessment criteria. While it may be easy to get a mortgage as a freelancer with one lender, it can be difficult with others… 

How to get a freelancer mortgage


So, can you get a mortgage as a freelancer? Yes, you can although it depends on several criteria. 

When applying for a mortgage as a free lancer it is important to understand that there is no difference in the mortgage that you will apply for and the mortgage someone who employed will apply for.

The only difference is how the application for a mortgage as a freelancer is assessed.

What this means is, each lender you apply with will assess your employment status and income, among other things such as your credit history. The application can be difficult, but it is not impossible!

The thing that makes it difficult is the fact that freelancing has varied income each month which often fluctuates. Sometimes, the difference in income can raise concerns regarding your affordability.

Lenders will assess your application in a different way to employed workers. Therefore, preparing your application beforehand will not only increase your chances of approval but may also allow you to borrow more.

The advisors at Mortgage Propeller are experts when it comes to mortgages for self-employed people so you are guaranteed advice that will benefit you. 

How long do you need to be a freelancer before you can get a mortgage?


The length of time that you have been freelancing for is something that lenders will consider when you are trying to secure a mortgage. Most lenders will require accounts over three years, although some may consider 1-2 years or sometimes as little as six months. 


Over time of course, having a variable income as a freelancer is something that becomes less of an issue, as it is easier to build a picture on how sustainable and reliable your income is. Therefore, it will be easier fir you to secure a mortgage. 

How do lenders assess mortgages for freelancers?


Freelance work can vary considerably, which makes securing a mortgage that bit harder. As lenders will assess your application according to your income and the way in which you freelance.


It’s important to show lenders that your income is guaranteed or at least highly likely to continue or increase. The last thing lenders want is for you to take a mortgage and then get little or no work from freelancing, which will not be of benefit to you as you will not be in a good financial state to pay the mortgage payments. 


When securing a mortgage as a freelancer it is important to outline the stability of your income. This is because you’ll of course need an income to repay your mortgage. Usually, lenders also require accounts or tax returns, depending on how your freelancing work is structured. 

Will bad credit affect a freelance mortgage application?


Are you are applying for a mortgage as a freelancer with bad credit? You will need to understand that you can still qualify for a mortgage it just may not be as easy, and bear in mind that the process application is already tricky. 


Having a bad credit score may cause issues with lenders but there are usually lenders happy to consider borrowers with all types of credit issues, including: 

  • Low credit scores
  • Late payments
  • Bankruptcy
  • Repossession


Having credit issues can limit the number of lenders you’ll have access to and adding this to the fact you are a freelancer, the options you have maybe even more limited.


To get an accurate idea of whether you’ll be eligible, get started with one of the experts at Mortgage Propeller today!

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