Can Agency Workers Get a Mortgage?

As an agency worker, you might think a mortgage is completely off the table. Flexible work is becoming more and more popular in the UK and all these people need somewhere to live. Unfortunately, it can be a bit of a minefield trying to navigate the mortgage application process as an agency worker because you will typically be deemed a higher risk than those in permanent employment.

Luckily, The Mortgage Heroes are here to save the day. We’re an established mortgage broker in the UK, and every day we help our clients find a mortgage – even if it’s against the odds! In most situations, our experienced team can source the right mortgage for you and support your application every step of the way.

In this article, we explain a bit more about mortgages for agency workers, and the factors that might affect your application.

Can Agency Workers Get a Mortgage?


Though agency workers often face a more complicated application process, there are many mortgage lenders who are happy to consider agency workers. An unconventional income might mean traditional lenders perceive you as high risk. Luckily, there are plenty of specialists out there who specifically provide mortgages to agency workers.

Typically, a lender might perceive agency work as not necessarily guaranteeing regular income. Lenders will want to see a track record of employment to make sure you can afford the mortgage now and into the future. Even if your income varies from month to month due to taking on contracts at varying pay rates, many lenders will be prepared to calculate your loan amount based on an average annual income

See more: What are the Different Types of Mortgages?

What Criteria Will Impact My Mortgage Application as an Agency Worker?

Job Role

Many different industry agency workers can be considered for a mortgage, but lenders will often look more favourably upon jobs that will always be in demand. A teacher is likely to appear less risky than a construction or warehouse worker, but, of course, there are plenty of other factors at play. Lenders will also look more favourably on applicants who have worked in the same role or industry for a long period of time. Consistency is key!

Length of Contract

The criteria for length of contract varies across mortgage lenders. Agency workers are often employed on temporary contracts, so for security, lenders often like there to be at least 6 months remaining, ideally 12. If you only have 3 months or less remaining, though, all is not lost. Specialists will still consider you for a loan, they’ll just require supplementary evidence such as proving your contract was at least 6 months long to begin with, even though it is now coming to a close. If your role has no defined end date, you’ll need to provide evidence of a clear work history for 2 years.

Credit Score

A good credit score can make a real difference to your application. Make sure you check your credit reports before you apply, pay bills in good time, and are on the electoral roll. As well as this, paying your credit card off in full each month alongside any other outstanding debts can help.

Credit Score & Mortgages – What Credit Score Do You Need for a Mortgage? >

Renewal of Contract

A contract that has already been renewed once with the same employer may put you in a good position for a mortgage. Some lenders will see this as lower risk and be happy to lend even if you only have a few months remaining on your existing contract but have an official letter confirming renewal.

Time with Agency

If you haven’t worked with the same agency for 12 months, some lenders might be wary of giving you a mortgage. Some lenders, however, might look past this as long as you have been doing the same role for 12 months.

Employment Gaps

Having significant gaps in your employment history often comes with the territory for agency workers, but unfortunately this can be a red flag to lenders. When it comes to mortgage lenders, they’re looking for stable employment and income streams. Don’t despair though. If you have a gap in your work history but you can provide clear evidence to explain why it occurred (i.e., maternity leave, accident or illness, caring for a relative, return to study etc), it shouldn’t affect your application too much.

Size of Deposit

A large deposit will improve your chances of being approved for a mortgage. For lenders, the greater the deposit, the lower the risk, so saving up to put down a sizeable amount of cash will do wonders for the outcome of your application.

How Much Can an Agency Worker Borrow?

With a good employment history that has few gaps and a contract with a long term remaining, there’s a good chance you’ll be able to borrow up to five times your income and have access to a maximum loan to value ratio (LTV) of 95%. However, if some of the above criteria aren’t as favourable or consistent or you are considered a higher risk, you may need a larger deposit to reduce the LTV and the risk for the lender.

Loan-to-Value (LTV) – Understanding Loan-to-Value & How it Works >

Let the Mortgage Heroes Come to Your Rescue!

Agency worker? Contractor? Bad credit score? First time buyer? Declined mortgage? Never fear! Even if you’re in a tricky situation, it doesn’t have to mean your dream home is out of the question. The Mortgage Heroes love helping people with unconventional incomes access the finance they need to secure their home.

If you need a hero to save the day, or just a quick chat to discuss your options, get in touch with our friendly team today.

Read more: How to Get a Mortgage Fast

Read more: Top Tips for Getting a Mortgage as a Contractor

We can help you find a mortgage. Contact a mortgage hero today.

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