Whether you work part-time out of choice or necessity, the good news is you should be able to get a mortgage if you find the right lender. However, each lender has its own criteria, which will determine how much you’ll be able to borrow and at what rate. In this guide, we’ll discuss everything you need to know about getting a mortgage on a part-time income, so you can understand your options and make the right decisions.
What Criteria Do Lenders Take Into Account When Assessing My Part-time Income?
The exact criteria vary between lenders, but in this section, we’ll outline some of the information your lender will want to know. Remember that being rejected by a lender can damage your credit score, so it’s important you speak with a whole of market mortgage broker who understands the criteria of each provider before you apply. Your mortgage advisor will discuss the following points with you before shopping around for a product that meets your needs.
Is your part-time contract permanent or temporary?
Most lenders will require you to be on a permanent part-time contract. If your part-time job is only temporary or short term, you may struggle to find a mortgage that meets your needs, but you could still be successful if your other circumstances make you a lower risk borrower – you’ll need to discuss your situation with your mortgage broker so they can work out what products are available to you.
How long have you been at your part-time job?
Most lenders will want you to have been at your current job for 6 months. Some will require at least 12 months, but these lenders may be able to offer better rates or borrowing limits. At the other end of the scale, a handful of lenders will consider a new part-time job or even a contract that hasn’t started yet as long as it’s commencing in the next 3 months.
Do you also have a full-time job or more than one part-time job?
Some people work a part-time job on the side of a full-time job, or have multiple part-time jobs. Although some lenders only consider your primary income, many will take into account multiple incomes providing you can prove they are reliable and sustainable.
Do you also receive benefits on top of your part-time income?
There are lenders that will take into account certain benefits such as child tax credits or child benefit when assessing your affordability. Many of these will cap how much benefit income they consider at 100% of your part-time income, so if you receive the majority of your income from benefits your offers may be lower from certain providers.
How Much Can I Borrow With a Part-time Job?
In addition to the criteria discussed above, how much you’ll be able to borrow will come down to various other factors. In general, mortgage providers will lend between 3x and 5x your salary, but most will consider other factors when assessing your affordability – such as your debts, living expenses, deposit, and credit score.
It’s also worth mentioning that some providers have a minimum income threshold, which is very relevant for most people with part-time jobs. Commonly, this threshold is around £20,000pa, but it can vary significantly between lender.
Can I Get a Buy To Let Mortgage With a Part-time Job?
Your options will be more limited with a part-time job, however, as long as you meet the affordability checks, credit checks, and minimum income threshold, you should be able to get a Buy To Let mortgage on a part-time income. Some lenders will consider more of the potential rental income than others, which could help you get a more favourable offer. Also, if you are an experienced landlord you should have more options – some providers lend to full-time landlords with no other income. But if you’re new to property investing don’t worry, you should still be able to get a mortgage if you find the right lender by using a whole of market mortgage broker.
The Bottom Line
If you have a part-time job, there are providers that are willing to lend to you as long as you meet their affordability and credit checks. However, each lender’s criteria varies, which can mean that the borrowing limit and interest rate you are offered also vary widely from lender to lender. It’s important you speak to a knowledgeable mortgage broker to see what deals are available to you and to protect your credit score by reducing the chances of being rejected.
We’re whole of market mortgage advisors with over 30 years of experience dealing with part-time job mortgage applications. With an in-depth understanding of each lender’s criteria, we can protect you from being rejected and help you find a deal that suits your needs perfectly. We’re duty-bound to offer you the right advice, so book in for your FREE consultation to get going quickly – this can be done remotely via phone or video call if you’d prefer. We look forward to helping you!
