Do you need a good employment history to get an equity release mortgage? It's possible to get a mortgage with a gap in your work history, but most lenders will require that you have worked with your employer for at least three months or have several years of work history. There are, however, mortgage lenders that will consider newly hired applicants. If you have CCJ in your credit history, you may be refused the release of capital, but there are more common reasons why people are refused a lifetime mortgage. In order to get an equity release mortgage, there cannot be more than two people in the property title.
If there are more, you'll have to eliminate other owners. If you have what is considered “non-standard” employment (for example, you are self-employed, working part time, or are a contractor), it might be more difficult to get your application approved, but it's far from impossible. When it comes to obtaining a mortgage for different types of employment, it is usually quite simple if you have a full-time job. However, if you have an atypical job (anything other than a full-time job), the choice will be more limited.
A broker who specializes in your specific type of employment will be able to tell you which lenders to go to and which are likely to turn you down. If you're self-employed but can show that you're earning a regular income, you should still have a lot of options from several lenders. However, if you work part-time in your probationary period, your choice will be more limited. Many lenders will require that you have been operating for at least two or three years, but there are a handful of specialists who will lend you money if you've only been in business for 12 months.
When it comes to contractors, if you have a job, you'll need to present pay stubs and bank statements as proof of income. If you are self-employed, you will be required to file an SA302 tax return as proof of your income. There are also special categories of mortgages offered by some lenders to people who work in specific professions such as doctors, teachers, accountants, lawyers, surveyors and investment bankers. These lenders may consider their future income when considering their mortgage application.
If you have a temporary job or work through an agency, some lenders may flatly reject your application if your contract is less than 12 months while others will continue to consider you. An experienced advisor can guide you in this regard. If you have a permanent part-time job and can make your monthly payments, most lenders won't have much trouble approving your application. The only caveat is that some lenders will turn you down outright if you earn less than a certain amount per year (20,000 pounds sterling for example).
In addition, the amount you can borrow may be limited if you have a lot of monthly expenses. If you have more than one part-time job, some lenders will also consider your second income while others will ignore it. Each lender has their own policy. Most lenders require evidence of a stable and guaranteed income before accepting an application but if you go to the right provider there's a chance that they'll approve your application even if you have a zero-hour contract. If your type of employment is considered “non-standard” it's important that you seek advice from a specialist broker before making any decision. Some types of purchase-to-rent mortgages are not regulated by the FCA and think carefully before insuring other debts against your home as foreclosure may occur if the mortgage isn't met. Whether buying your first property or an experienced homebuyer, if your type of employment is considered “non-standard” it's important that you talk to a mortgage broker before making any decision.
We work with mortgage agents who are experts in different mortgage topics and can help guide those with atypical jobs through the process.