If you’re a blogger and work for yourself most of the time, you might already know how hard it is to get a mortgage. With 15% of the population now self-employed in one way or another, this trend looks set to shape the mortgage market for years to come.
Let’s have a look at 6 tips for bloggers to help them get a mortgage.
- Look For Specialist Lenders
Instead of going for one of the big lending firms or major banks that are trying to appeal to the mass market, you might want to try a specialist lender that has your specific situation in mind.
There are lenders who specialise in the self-employed so they will be able to offer you more appropriate terms and hopefully a better deal.
While there aren’t many of these sorts of lenders yet, this sector looks set to grow as more and more people become self-employed. You might also be able to find specialist lenders that cater for people in your age-group or some other demographic.
- Get A Detailed Work And Earning History
This is super-important as a blogger. While it’s easy to just show a lender your regular paychecks when you’ve got a standard employer, things are different as a blogger.
The amount you earn goes up and down each month, so you’ll be seen as more of a risk to a mortgage provider. This generally means you’ll need to show proof of your earnings over a much longer period.
The more you can show you earned over the last few months, the better. But you’ll also have to show how steady your income has been. Some lenders might want to see earnings for two years.
While an average of the two-year period can be useful, lenders might still be wary if your earnings have fluctuated massively and there have been months where you haven’t earned anything. That could lead to you missing mortgage payments.
- Get A Bigger Deposit
One way to ease the risk and make you a better proposition for a mortgage provider is to have a bigger deposit. The more you can pay off at the beginning of your mortgage, the less you might need to lend.
You’ll also have more equity and shouldn’t be seen as risky if you fail to make a payment. Saving for longer and having a bigger deposit is a great way to help get better terms as a blogger.
- Consider A Cheaper Property
While you might have your heart set on a more expensive property, you might have to realise that it’s unrealistic. If that’s the case, then consider a smaller or cheaper home for a while.
That way, you can build up a history of making mortgage payments that’ll put you in a better place when you want to move. You’ll also be getting on the property ladder early and will be able to make the most of any house price rises in the meantime.
- Get Competitive Quotes
There are lots of different options when looking for a mortgage, as a blogger or otherwise. That means you’ll need to shop around to find the best offers. Try online comparison sites to get the best possible quotes & find a cheaper mortgage policy.
- Improve Your Credit Rating
Another way to improve your chances of getting a mortgage is to improve your credit rating. Your credit score is important to lenders, and shows them how good you are with money and other financial products. Make sure it’s in good shape, especially if you’re a self employed blogger.
Have you struggled to get a mortgage as a blogger? What worked for you? Share your success stories or problems below the line.