Updated: December 10, 2021

Getting a Mortgage With a Part Time Job

Worried you won’t get a mortgage because your job is part-time? The brokers we work with can help you get approved!

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 10, 2021

Getting a mortgage with a part-time job might seem a difficult prospect. But with advice from a specialist mortgage broker and this guide on your side, you’ll be surprised by how many options there are, many with great terms on loan-to-value (LTV) and interest rates.

In this article, you’ll learn how it’s possible to get a mortgage with a part-time job, how this works from an affordability perspective, and how to find a broker who can help you out.

Can you get a mortgage with a part-time job?

Yes. Even if you work part-time hours you can secure that all-important mortgage and buy a home of your own, provided you have an income and the ability to make monthly repayments. In many cases, people who work part-time also have another form of income, with benefits, a pension, or investment income all eligible to count towards the income your potential lender will use to assess your mortgage application.

Of course, because mortgage loans are based on how much you can repay each month, the size of your mortgage will be in line with what your earnings allow. However, job security is also important which means the longer you’ve had your job, even if you don’t work full-time hours, the less risky you become from a financial perspective.

But, with so many mortgage options available, there are products that can help you get a bigger and better deal than you maybe thought possible.

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How to get a mortgage with a part-time job

You could get a mortgage with a part-time job under the following circumstances…

Bullet Tick Take out a small mortgage that’s affordable on your part-time income
Bullet Tick Put down a large deposit to limit the amount you need to borrow
Bullet Tick Use other forms of capital/assets to supplement your income
Bullet Tick Take out a joint mortgage with somebody who’s working full-time
Bullet Tick With family support, such as a guarantor mortgage

Whatever circumstances you’re applying under, keep in mind that getting a mortgage can be more difficult if you aren’t in full-time employment, so your first step should be to find a mortgage broker. This will boost your chances of approval and help ensure that you get the best possible deal.

What documents you’ll need

All mortgage lenders, regardless of whether they think of part-time working applicants as higher risk or not, will require proof of your eligibility to apply for a mortgage.

That will include:

  • Proof of employment
  • Proof of earnings
  • A clear indication of spending commitments

If you have the paperwork or a suitable online trail of evidence supporting your application, then you can take the next steps in the mortgage process.

Deposit and credit history requirements

Another important detail for mortgage lenders, including specialist mortgage providers, is the size of deposit you have. The larger your deposit the better the interest rate you can secure. This is important because the lower your mortgage interest rate, the quicker you pay off the front-loaded interest repayment, helping you to build up more equity in your property.

This doesn’t mean that if you have a small deposit you won’t get a mortgage. But if your deposit is small, it will be harder to secure a mortgage of the size you want at the interest rate you would like.

Meanwhile, just as with any financial application, your credit history is also something your potential mortgage lender will look at to help assess your application and determine the interest rate they can agree. Don’t worry, though, even if your credit history isn’t perfect, you can still secure a mortgage with a part-time job if you find the right broker.

What is the affordability criteria?

Affordability is an important part of the mortgage application process. Lenders will assess the affordability of the loan you are applying for through a number of ways, including a review of your income and outgoings.

This is why, for example, people who pay £1,000 per month in rent are only able to secure a mortgage with a maximum monthly repayment of £850; the lender has assessed that, based on their income and spending habits, this is the highest amount the borrower can comfortably afford while leaving room for any future possible financial problems or if their mortgage repayment interest rate should rise.

An advisor can also help you prove to potential lenders that even though your income is lower than that of someone in full-time employment, when it’s combined with your reliability over repayments, those earnings are enough for them to agree the mortgage amount you need to buy your own home.

While all lenders will carry out some form of affordability assessment, some also combine that with income multiple rules.

An income multiple is how many times your annual income a lender is willing to allow. This could be anywhere from 4.5 times your annual income to 6 times. When you’re working less than full-time hours, it’s important to approach the lenders who are happy to lend at those higher income multiples.

Joint mortgage applications with one applicant in part-time work

Joint mortgage applications are also subject to the same affordability assessments as those of a single applicant. However, while you might think it will naturally mean you can secure a larger mortgage, the inclusion of one applicant working full-time and the other in part-time employment can mean the lower income is treated differently. That’s particularly likely to be the case with some high street lenders who prefer to lend to the least risky customers.

Of course, some lenders will simply accept proof of income and employment, assess your affordability questionnaire and where income multiples are used, they just put the two incomes together and go from there. However, this situation is more likely to come from specialist mortgage lenders, many of whom are only known to mortgage advisors and not accessible to the general public.

How are second jobs assessed?

If you have two part-time jobs or one full-time and a second part-time job, there are many lenders who will consider the income of the second job in your mortgage application, but a second income is treated differently by different lenders. For instance, some will only consider a percentage of the income of the second job, while others will only accept the income if you have had the second job for six months or longer.

Another detail that many lenders consider is how many hours you work across both jobs and if that is something you can and will continue to manage into the future. That’s because a mortgage application is designed to help the lender assess how much of a risk you are as a customer. The less risky you’re considered, the better chance of the lender approving your mortgage. But, if they think there’s a possibility your second job won’t last, then the level of risk associated with your application increases.

In many cases, a second, part-time job can be a benefit when it comes to your mortgage application. But in others, it can be looked upon with caution and might be a better option for saving a deposit rather than applying for a mortgage.

Supplementing your part-time income

Some will treat benefits, investments and other assets are treated as declarable income and they can be combined with your earnings from a part-time job to boost your affordability.

There are a number of different benefits that many people who don’t work full-time hours are eligible for and is a provable regular payment.

They include…

  • Universal Credit
  • Working Tax Credit
  • Carers Allowance
  • Disability Benefits
  • And more…

Although not all lenders consider this for affordability purposes, some do and others accept a capped percentage of them. Income from a pension, including your government pension, is also accepted by some lenders.

If you have a monthly, or even quarterly income from financial investments, that is another way you can increase your income as a part-time worker. Meanwhile, rental income from an investment property, either with or without a mortgage may also be considered by some lenders.

Using a government scheme to boost your affordability

There are a range of government mortgage schemes that could help you get a mortgage if your income is tight due to working part-time hours and saving for a deposit is proving difficult.

The mortgage guarantee scheme is designed to increase lenders approval of 95% LTV mortgages where the buyer is credit-worthy but perhaps lacking a little in immediate funds. It’s a great option if you have an excellent credit rating but a small deposit and possibly a part-time income that’s regular and reliable.

As it’s new, not all lenders accept applications through it. However, some do which could prove helpful for people working part-time or with a low income who wish to buy a home. In fact, there are a range of government schemes designed to make it easier to buy a home across the UK.

Among those that could be particularly helpful if you work part-time are:

  • Help to Buy Equity Loan
  • Shared Ownership
  • The First Homes scheme
  • The Right to Buy

Get matched with a specialist mortgage broker today

Applying for a mortgage can be daunting even if you have a full-time job, a large deposit and a perfect credit history, which means a part-time job can make a big difference to the decision some lenders will make. Avoid getting disheartened from a ‘no’ to your application and speak with a specialist mortgage advisor.

We’re here to put you in touch with a mortgage advisor who specialises in helping people with part-time jobs get a mortgage. That means they know which lenders to speak to, what criteria you need to fulfil and how to move forward with your ambitions to buy a home of your own.

Call 0808 189 0463 or make an enquiry and we’ll connect you with the right mortgage advisor for your situation for a free, no-obligation, initial consultation.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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