Mortgages for agency workers

Mortgage lenders are reluctant to offer mortgages to an agency worker because of poor job security and low salary compared to other professions. However, agency workers have different solutions to prove that they can also afford to pay the mortgage repayments without having permanent employment.

According to the latest survey by the Office of National Statistics in the UK, the number of temporary workers is estimated to 1.53 million. Because of the massive increment in temporary workers in the UK, many lenders have recognised the growing demand for mortgages within agency temp workers. So, if you are a temporary agency worker in the UK, you now have an opportunity to climb the property ladder by getting your first home loan.


Post Topics – Agency Workers Mortgages

Mortgages for agency workers

What sort of agency workers could get a mortgage?

Are you on a fixed-term or temporary contract?

Factors impact mortgage on a temporary contract?

What are the different types of contracts for an agency worker?

Key points to note for agency worker mortgages

What to do next


What sort of agency workers could get a mortgage?

People from many industries can be considered for an agency worker mortgage. The most common industries are office and administration, IT professionals, finance, healthcare, and medical professionals. It is also important to know that every mortgage lender has different lending criteria for a different industry.

Before applying for an agency worker mortgage, you should first consider getting mortgage advice from specialist brokers.


Are you on a fixed-term or temporary contract?

The most important thing to note here is that it does not matter even if you are on a fixed-term or short-term contract because it does not guarantee that you will be paid after a certain time in the future. The process of getting a loan as a temporary contract worker is much more complicated when compared to a full-time employee. Apart from all this, some mortgage lenders are willing to provide you with the required mortgage on your current contract.


Factors impact mortgage on a temporary contract?

Various factors will impact your mortgage application as a temp agency worker. We have mentioned the most important factors below:

  • Job Role: Your job title is the first thing that a prospective mortgage lender will ask. As different skilled roles have different advantages in the business processes. Depending on the individual’s skill level, some roles are seen as more stable than other roles. For example, lower-skilled, labour-intensive roles such as construction worker, seasonal worker, picking and packing warehouse operatives etc., are considered as easy to replace skills. The individuals working in these skill sets generally have fewer mortgage deals and options. But on the other hand, individuals with a high level of skills like health professionals, solicitors, medical professionals, teachers etc., tend to have better mortgage deals and options. Depending on your career path, the industry you work in may make a huge difference in getting a mortgage as an agency worker. Yes, the type of job role impacts your chances of getting a mortgage, but we are here to help you with the best advice as a mortgage adviser. We will discuss your current job role and give you the most useful advice and search for a prospective mortgage lender for you.
  • Length of your current contract: When applying for a mortgage with a temporary employment contract, the length of the contract also plays a vital role in the application process. If your agency contract is fixed or short term, most mainstream lenders ask for a minimum of six months left in your contract. Even if you have only three months left in your contract, there is some chance of getting the required loan amount. But in this case, it is advisable to contact the specialist mortgage broker.
  • If the contract has been renewed before: If your contract is renewed before with the same organisation, it’s a good sign, and you can get an advantage in the mortgage application process. In a specific case, if zero months are left for your contract, official confirmation of contract renewal will also be considered for the process.
  • Length of time in current job role: If, as a temporary worker, you are employed with the same organisation or agency for less than 12 months, then some mainstream lenders may decline your mortgage application. But doing the same job with another company will work in favour of your application process.
  • Employment gap: Gaps in employment and a lack of a regular income will be problematic for some lenders. Some lenders will accept gaps in employment within the last six or three months, whereas some others will have no restrictions as long as you have a stable income. It is also important to note that it will work in your favour during the application process if you have a proper explanation of your gap years. In this scenario, you need to contact a mortgage advisor who can help you build up the savings to cover the period between contracts and show a better record of financial stability.
  • Credit History: A good credit history is also required for getting a loan as a temporary worker. If you have any bad credit history, it will impact your mortgage application process.  

What are the different types of contract for an agency worker?

There are four different types of contract you could be on as an agency worker and are mentioned below:

  1. Agency worker on probation period
  2. Agency worker on a fixed-term contract
  3. Agency worker on a short term contract
  4. Agency worker on a temporary contract

Key points to note for agency worker mortgages

  • Find a specialist mortgage broker: Always contact the advisor who is familiar with the needs of an agency worker
  • Higher Deposit: Its always better to put a higher deposit if possible for the property; it can also help you get better rates.
  • Credit Score: It is advisable to check for bad credit before starting your application. You must have a good history of making repayments.
  • Documentation: Gather all the necessary documentation before starting your application process. You will need up-to-date copies of all your previous contracts, payslips, and other documentation relating to your agency work.

What to do next: 

If you want to get a loan as an agency worker on a fixed, temporary or short term employment contract, feel free to contact us as we can help you with suitable financial advice. Seeking professional support could save you time and money in the long term. At needingadvice.co.uk Ltd, we are always here to help you and your family with our best advice and support. So get in touch with us today to streamline your mortgage process.