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Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance
Can a Second Job be Used For a Mortgage?
Yes lenders offer mortgages to clients working a second job. Mortgage lenders are recognising the growing trend of clients working a second job in the UK. As a result second job mortgages are becoming more popular, with more mortgage lenders offering these to clients.
Mortgage lenders will accept two jobs or potentially more as long as your hours are sustainable and achievable. This could be a combination of two employed roles or one employed and one self employed position.
There is more underwriting required from a mortgage lender to secure a mortgage using a second income. Mortgage lenders will want to assess the sustainability of the second job. They will take into consideration how you balance the two jobs in your daily life and the likelihood you could continue working both jobs.
Finding a mortgage lender who accepts your second income for a mortgage can increase your borrowing potential and make obtaining a mortgage that little bit easier.
How Long Do You Have to Work a Second Job To Get a Mortgage?
Generally, mortgage lenders will want to see evidence you have been doing two jobs for at least 6 months, with some wanting a minimum 12 months. Mortgage lenders want to see your second job is sustainable. If you have only just started the role then you won’t be able to evidence that working the 2 jobs together is manageable.
How Much of the Second Job Income Can Be Used by the Mortgage Lender?
Mortgage lenders will use between 50%-100% of your second job’s income. Finding a mortgage lender willing to accept 100% can make a real difference to the amount you can borrow.
Mortgage lenders are more willing to offer 100% income if you have a longer track record in the role, and you are on a permanent contract.
Does My Second Job Need to Be Similar to the Main One?
Your second job does not need to be in the same line of work as your main role. Mortgage lenders are becoming more aware of this as it is more common for someone to work a 9-5 office job with an evening job which is completely unrelated. Provided the hours are manageable and sustainable there will be lenders open to this.
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Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.
With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
Is There a Maximum Number of Hours I Can Work in a Week for a Second Job Mortgage?
Most mortgage lenders will consider between 50-60 hours a week. The lender may decide to cap the amount of income they will use, if they think the amount of hours you work is unsustainable for the entirety of the mortgage. You may be able to go above 60 hours on referral.
They will ask the question is it plausible you can work both roles each month. More questions will be asked if the amount of hours you are contracted to do is high.
Real Case Scenario
A client came to us stating he worked 70 hours per week. Most lenders were not happy to consider the 2 jobs as they assessed the amount of hours to be unsustainable. As the client had been working 2 jobs for 2 years we were able to find a lender who was happy to use 100% of all the income. This meant the client could borrow a larger mortgage and secure a property he wanted to purchase.
Why do Some Mortgage Lenders not Accept Second Job Income?
Some mortgage lenders don’t accept second job income as there is more risk you may not be able to pay the mortgage if the 2 jobs were not sustainable.
Most lenders now do accept second job income on paper, but we have found some mortgage lenders do not accept the income at application stage. There are many clients that have come to us after having this happen to them with a main high street lender.
Real Case Scenario
A client came to us after having an application declined by Halifax, as they were not happy to take the 2nd job income into account. As a result the client could not afford the mortgage required for their purchase.
The client came to us to find a mortgage lender who would accept both jobs. We were able to place the client with another lender with a much better attitude to working 2 jobs and as a result was able to secure a mortgage offer for the client.
Can I Use Second Job Income If I Am a First Time Buyer?
Yes, you can use a second job’s income to increase your borrowing capabilities as a first time buyer. You may want to boost your borrowing ability and finding the right lender could add thousands of pounds to the mortgage amount offered by some lenders.
Can I use the Second Job Income If It’s a Self Employed Role?
Mortgage lenders can accept second job income from a self employed role you carry out. You will need to prove this income through tax calculations and tax overviews or accounts. Mortgage lenders may require two years’ worth of evidence of your self-employed income. Therefore the timeframe you have to evidence is longer than if you were employed.
There are some mortgage lenders that may consider one years evidence. However they would expect the self employed role to be in the same line of work as your main income role.
Can I use the Second Job Income If it’s a Zero Hours Contract Role?
Mortgage lenders can accept second job income from a zero hours contract. Mortgage lenders would want evidence of 12-24 months uninterrupted history in this role. It is also likely due to the nature of zero hours contracts, lenders will cap the amount of income they will use to 50%.
Why Use a Mortgage Broker?
Finding the right mortgage lender to assess your second job income could add thousands of pounds to your borrowing amount. You want to make sure you pick the right lender for your individual circumstances first time around.
Not all lenders accept 2nd job income and even though some say they will on paper in reality they don’t. A mortgage broker can speak with a lender before applying to ensure a lender will accept all the income. This will save you time and reduce the impact multiple applications could have to your credit score.
This is the role of a mortgage broker and by using Switch you can be assured you will have the best option recommended to you.
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