In this article, we will explain in detail about agency worker mortgages in the UK. The demand for agency workers is increasing every year. Many agency workers are interested in getting mortgage applications approved by mortgage lenders. But they have some problems with it. They don’t know how to apply for a mortgage and what documents they must submit. So, here we will discuss all these things in detail.

If you are a temporary or permanent worker interested in starting your journey onto the property ladder in the UK, we will help you with your mortgage requirements.

What is an Agency Worker Mortgage?

An agency worker mortgage is a type of mortgage that can be taken out by an employee on behalf of their employer.

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 be 1.53 million. Because of the massive increment in temporary workers in the UK, many lenders have recognised the growing demand for mortgages among 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

Damian Youell

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2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

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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 more complicated than 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, give you the most useful advice, and search for a prospective mortgage lender
  • Length of your current contract: When applying for a temporary employment contract mortgage, the contract’s length 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 a 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 contracts 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 an advisor who is familiar with the needs of an agency worker
  • Higher Deposit: It’s 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 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.

FAQs – Agency Worker Mortgages

Can Agency Workers Get a Mortgage?

Yes, an agency worker can get a mortgage to buy a house in the UK. The main difference when applying for a mortgage as an agency worker compared to someone working full-time is that you will not have a permanent address. This means that you will need to provide proof of where you live at the moment. As well as this, you will need to prove that you have enough funds saved to pay off the mortgage. If you are struggling to get a good mortgage deal, you can always contact a mortgage broker to help you with your application.

What Criteria Will Impact My Mortgage Application as a Worker?

There are many criteria that could impact your mortgage application, such as your job role. Most mortgage lenders prefer jobs in demanding industries like construction, engineering, IT, healthcare etc. However, there are certain sectors most lenders may not prefer due to their high-risk nature. These include retail, hospitality, leisure, education, transport, manufacturing, agriculture and food processing.

The second criterion that mortgage lenders will check is the length of your job contract. If you are working on a temporary contract, then it would be difficult to get a good mortgage deal without the involvement of a mortgage expert.

Thirdly, the mortgage lender will also check your credit score, if you have a good credit score, then you don’t need to worry, but if you have a bad credit score, you may need to contact for a piece of financial advice before starting your mortgage application.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.