Can I Get a Mortgage with a part time job?

This page was last updated on 1 May 2022

Can I Get a Mortgage with a part time job In 2022?

Why Your Job Status Matters to Lenders

Your job status is important to lenders because it is a reflection of your employment history and credit score. With mortgage providers lending money to borrowers at their own risk, it is easy to see why they are keen to make sure the money will be paid back.

Lenders typically prefer borrowers who have been in their current job for a long time, as this indicates that they are likely to be in a stable financial situation. A good credit score is also an indication that you are likely to repay your mortgage loan on time.

What is considered part time income?

Part-time income is typically considered to be any income received from a job where you work less than the standard number of hours per week. Many companies consider less than 30-35 hours a week to be part time income.

Usually, lenders will look at your gross monthly income, which includes all forms of compensation such as hourly wage, commission payments and tips. Once they have this figure, they may apply certain deductions and allowances before arriving at the approximate annual income (your actual take home pay).

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If you are on a part time contract, most lenders will consider you more high risk than someone on a full time contract. However, while income is a major factor, if other factors work in your favour such as job employment history and good credit, lenders may consider you to be an attractive risk and offer an above average interest rate for your mortgage.

Mortgage providers typically define part-time employees as those who work 25 hours or less per week. It’s important to remember that each mortgage lender has its own criteria when it comes to approving mortgages for those with part-time incomes – so shop around!

Stable Hours and Regular Income

Lenders will take into account not just the quantity of hours worked but also the regularity. If you are contracted to work part-time hours for an employer but have worked there for many years, lenders may be more inclined to lend to you.

If the nature of your employment is likely to be less stable – maybe because it’s a zero hours contract or you work in retail where your hours fluctuate depending on demand, this will unfortunately count against you in the eyes of many lenders.

Many mortgage lenders will require that you show six months’ worth of bank statements in order to demonstrate that you meet all repayments on any other debts or loans. So remember, if your income is irregular then provide as much evidence as possible about how much you earn.

It is always best to be honest and up-front with your lender and to provide as many facts and figures as you can. If you have any concerns about what you can and cannot afford, it is worth asking a specialist mortgage broker to provide mortgage advice and giving them honest and open information about your situation.

How many hours do you need to work to get a mortgage?

There is no definitive answer when it comes to getting a mortgage on low hours in the UK. Each mortgage lender will have its own set of rules and criteria when it comes to assessing mortgages and the minimum income required will also sometimes differ. However, in general, what will matter most is the amount of income coming in, regardless of the hours worked.

There are a few things you can do to improve your chances of getting a mortgage approval with low income.

  • Make sure your credit score is in good shape.
  • Have a stable job history with no gaps.
  • Make sure your monthly income is enough to cover the mortgage repayments.
  • Consider getting someone else to be on title with you e.g. spouse or partner if their income will boost your own.
  • Use a mortgage advisor to help you plan your mortgage online.

Many first time home buyers find they need additional income in order to qualify for their dream home. This is where buying a property jointly with another person (who earns more) might be an option for your mortgage application.

Will doing freelance work make me look like a less reliable borrower?

Freelance work can sometimes make you look like a less reliable borrower to lenders. This is because freelance work is often associated with less job stability. 

If your gross income mainly derives from freelance work, lenders and mortgage brokers may see you as a higher risk and may not be willing to lend you as much money as you need. However, your total income from freelance work may well be high enough to satisfy the lending criteria. Additionally, not all lenders have the same requirements so you may still be able to get a decent loan while working freelance.

Getting a second job can be a good way to boost your income from freelance work.

Can I get a loan if I just started a job?

It is possible to get a loan if you have not been in your job for very long. Lenders and mortgage brokers typically look at your employment history, credit score and total income to determine if you are worth the risk of a loan. If you have a solid employment history and good credit, you may be able to get a loan even when you have just started out in a new job.

Most mortgage lenders will look at your last two years of employment history but if you have been in a job for less than two years, they will look at your previous employment to check that you are in a stable position, financially.

Does the length of your contract matter to lenders?

As long as your job contract doesn’t have a fixed termination date, most lenders will consider it to be a permanent contract and ongoing job which will work in your favour when you commence your mortgage application.

If you have a probationary period in your job contract, lenders may want to investigate this further to ensure that your only income source will not suddenly dry up when the probationary period expires. Sometimes lenders will contact your employer to clarify how long you can expect to be in employment.

Most mortgage lenders will also at least consider offering a mortgage based on the evidence from a future contract of employment. Therefore, if your job has not started yet but your annual income is likely to change in the near future, you may still be able to get a mortgage with a part time job. 

It is therefore best to keep your employer in the loop as much as possible to ensure smooth communication between them, yourself and the mortgage lender.

How much deposit will I need if I work part time?

The minimum deposit required will typically be 5% however this will vary depending on the value of the property and what the mortgage lenders think you will be able to afford. 

Understanding loan to value and deposits is very important so it might be best to speak with a mortgage broker who will be able to tell you the minimum mortgage deposit required by the lender.

Your job status is important to lenders because it is a reflection of your employment history and credit score.

What are my chances of getting approved for a loan?

There are many lenders that allow borrowers to get a mortgage with a part time job. However, the interest rate on these loans tend to be higher than what is offered if you have a full time job, especially if you also have bad credit.

A common problem first time buyers face is that they lack enough earned income to qualify for a home loan. This can be troublesome because many banks want applicants to make at least three times their monthly housing payment (this is called income multiples) in order to approve them for a loan.

So if you earn about two or three thousand pounds per month, you should be able to purchase a home that costs around £800 or £1,200. Ask an online mortgage advisor or mortgage broker if you are unsure about how these income multiple tests work in practice. 

Can you get a mortgage with other supplementary income?

If you have a part time second job or an additional form of income (such as child benefit,  child tax credits or working tax credits), some lenders may take this into consideration alongside your primary source of income.

As long as the other income that your second jobs provide is reliable and substantial enough to support your monthly repayments of the loan, most lenders will be happy to take multiple sources of income into consideration. 

will i get a mortgage without a permanent job

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Can you get a mortgage with other supplementary income?

If you have a part time second job or an additional form of income (such as child benefit,  child tax credits or working tax credits), some lenders may take this into consideration alongside your primary source of income.

As long as the other income that your second jobs provide is reliable and substantial enough to support your monthly repayments of the loan, most lenders will be happy to take multiple sources of income into consideration. 

Can I apply for a mortgage with part time job if I have bad credit?

Applying for a mortgage deal with low income and bad credit will not be easy. Essentially, the mortgage lenders are looking for evidence that you are a trustworthy individual who is likely to repay the loan and if you can’t show this in facts and figures, you may struggle to get approved.

With few mortgage providers lending to people with part time jobs and poor credit, you may struggle, but it is always worth consulting a mortgage advisor to be sure. 

Co-signers

If you are having trouble applying for a mortgage due to your low income or poor credit, you may want to consider enlisting the help of a co-signer to help you get the best mortgage deal. Most banks will allow individuals with part-time jobs to apply for loans as long as they have an endorser who earns enough money to cover the monthly housing payment and other expenses while you continue working on your part time job.

mortgage with more than one part time job

Literally speaking, it means your friend or family member has to sign a paper which states that he or she will accept liability if you don’t pay off the loan. So, someone who is determined to help you during your financial difficulties and wants to help you avoid falling into debt, will be a good choice in this situation.

But it doesn’t mean every individual with a part time job can always get approved for a loan from banks. The endorsers have to meet certain requirements as well. They need to have high credit scores which also means they must keep their debts low, so as not to affect their income negatively. They should have enough monthly income not only for themselves but also for all other individuals mentioned in the application process too.

Using a government scheme to boost your affordability

The good news is, the government does have some schemes available to help if you are struggling to afford your mortgage. Mortgage advice can be found on the official government website but the main schemes are briefly outlined below. 

Help to Buy

Help to Buy is a scheme offered by the government which allows people to purchase a new-build home without the need for a huge mortgage deposit. These properties are mostly marketed towards first time buyers which means that you must never have owned another property before, either in the UK or abroad.

The scheme offers a 20% equity loan from the government, which can be used towards the purchase of a new build home. The loan is interest free for the first five years and can be repaid at any time or when the property is sold.

Eligibility for the Help to Buy scheme depends on a number of factors. You must be over 18 and a first time buyer. If you choose to buy with another person, both of you must meet these requirements.

There is no minimum acceptable income bracket but you must be able to afford at least 80% of the purchase through mortgage and deposit. You must also be able to afford at least 5% of the total value of the property as a deposit. 

Shared Ownership

The government also offers another affordability boosting scheme known as shared ownership. If you cannot afford all of the deposits or payments for your new home, you can buy a share in the property and pay rent to a landlord on the remainder. You can increase your share gradually until you can afford to own the entire house.

This is a good option if you are short on cash due to having part time work or otherwise as you only have to be able to afford a 5-10% deposit on your share of the home which can be as little as 25% of the entire property. Bear in mind that once again you will need to prove good credit history and evidence that you can afford the monthly payments.

Joint mortgage applications with one applicant working a part time job

Having one applicant in part time work will not necessarily affect your ability to get a mortgage. However, if as a result, this makes your joint income significantly lower, then be aware that it may affect the size of mortgage you are able to get.

Be prepared for questions on your employment status and how it may affect your affordability. If you are only in part time work, the lender will want to know if this will change and what plans you have to increase earnings or keep working. As a result they may be more reluctant to lend as much money as if both of you were earning full time salaries.

So will I get a mortgage without a permanent job?

Part-time work is usually treated as a potential indicator of future financial unreliability by lenders and there is often less flexibility in the underwriting process for those with part time jobs. However, if you’re persistent and shop around then you’ll be surprised how many lenders will accept your application (providing that your credit history and employment record are satisfactory).

To summarise, there is no reason why someone should not qualify for a mortgage with a part time job as long as they meet other requirements such as income level and credit score etc. It is worth looking at whether you are eligible for any government affordability schemes such as shared ownership or a help to buy as these make it easier for those with lower income to get a foot on the property ladder.

Talk to a mortgage broker for tailored advice specific to you before starting your mortgage application so that you know for certain whether you will meet the minimum income threshold and be eligible for a mortgage with a part time job. Mortgage advice can now be readily accessible online with all the advisors experts on different mortgage subjects so it is easier than ever to secure the best deal for you. 

Over 55 and a home owner? Try our equity release calculator and see how much money you can get from your house, tax-free, in 30 seconds

Learn More About Mortgages In The UK

How do mortgages work in the UK?

Buying a home or land is expensive. A mortgage is a financial product that helps people purchase their own home or land.This is especially true for a first time buyer, as it might be the only route onto the property ladder.

The minimum credit score for a mortgage

ou can still be approved for a mortgage to buy a property if you have a poor credit score. However, someone with a poor credit score will probably have a higher interest rate than someone whose credit score is good. Buyers with a low credit score may also need to pay a bigger deposit.

fixed term Contract Mortgages

A fixed term contract is a way of describing certain types of employment. If your current employment contract is due to end after a certain period of time, or after a specific piece of work is complete, you are likely on a fixed term contract. 

how long does a mortgage application take?

After sending off the final application waiting for the decision can be frustrating. Many prospective homeowners ask ‘how long does it take?’ but the truth is the mortgage approval process is always different for each customer.

how long does conveyancing take?

The entire conveyancing process will normally take anywhere between 8-12 weeks, however you should be prepared for this to take much longer depending on your circumstances and wider factors. This articles explores what the timescale involves.

Mortgages if You are bankrupt

There is no hard and fast rule when it comes to what lenders will accept your mortgage application if you want to get a mortgage after bankruptcy. They will lend to discharged bankrupts and consider each case individually. 

what stops you getting a mortgage?

Everyone wants to get the best deal when it comes to buying a home and getting a mortgage when they buy a home. However, being too ambitious can lead to your application being rejected. 

how much do mortgage advisors charge?

Fees for mortgage brokers can be off-putting. A mortgage is an expensive financial product, and often buyers want to save as much money as possible. This might limit their options when it comes to using a mortgage broker.  However, not everyone advisor charges a fee.

IVA Mortgage

When you have an IVA, mortgage acceptance is still possible. However, involuntary agreement mortgage lenders can be hard to find. Typically, a high street company will be more less keen to give you a mortgage. 

Article author

James Lloyd

I am the primary writer and author for Help and Advice, having originally helped start the site because I recognised that there was a need for easy to read, free and comprehensive information on the web. I have been able to use my background in finance to produce a number of articles for the site, as well as develop the financial fitness assessment tool. This is a tool that provides you with practical advice on improving your personal financial health.

Outside of work I am a keen rugby player and used to play up to a semi-professional level before the years of injury finally took their toll.  Now you are more likely to see me in the clubhouse enjoying the game.

Email – james@helpandadvice.co.uk

Linked in – Connect with me 

Frequently Asked Questions

What is considered part time income?

Part-time income is typically considered to be any income received from a job where you work less than the standard number of hours per week.

How many hours do you need to work to get a mortgage?

There is no definitive answer when it comes to getting a mortgage on low hours in the UK. Each mortgage lender will have its own set of rules and criteria when it comes to assessing mortgages and the minimum income required will also sometimes differ.

Will doing freelance work make me look like a less reliable borrower?

Freelance work can sometimes make you look like a less reliable borrower to lenders. This is because freelance work is often associated with less job stability.

Does the length of your contract matter to lenders?

As long as your job contract doesn’t have a fixed termination date, most lenders will consider it to be a permanent contract and ongoing job which will work in your favour when you commence your mortgage application.

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