Can You Get A Mortgage Without A Job?
Many people believe that they need a job in order to get a mortgage. However, you might be surprised to learn that this is not always the case. There are a number of ways that you can get a mortgage without a job, although you’ll find that the lenders available to you are greatly reduced when you don’t have employment.
In this article, we’ll explain how you can get a mortgage without a job, what your other options are for securing a mortgage, and some of the challenges that you may face.
Securing a Mortgage Without Employment
There are a few different ways in which you can get a mortgage without having a job. These include:
- Having another form of income
- Having a reserve of funds
- Having a guarantor
Let’s take a look at each of these options in more detail.
Having Another Form Of Income
One of the most common ways to get a mortgage without a job is by having another form of income. This could be in the form of investment income, rental payments from property that you own, pension income or even child support payments. If you can show the lender that you have a reliable source of income, they may be more likely to approve your loan application.
Of course, the amount of income that you’ll need to show will vary depending on the size of the loan that you’re applying for, so you’ll need to ensure that your income is sufficient.
Having A Reserve Of Funds
Another option for getting a mortgage without a job is to have a reserve of funds. This could be in the form of savings or investments that you can use as collateral for the loan. If you have a large enough sum of money saved up, the lender may be willing to give you a loan based on this.
However, it’s worth bearing in mind that most lenders will only lend up to a certain percentage of the value of your savings or investments, so you’ll need to have a sizeable amount saved up in order to secure a mortgage.
Having A Guarantor
Finally, another option for getting a mortgage without a job is to have a guarantor. This is someone who agrees to cover your loan repayments if you are unable to make them yourself.
Having a guarantor can be a great way to get a mortgage without employment, as it means that the lender has someone else to rely on for the repayment of the loan. However, it’s worth bearing in mind that most lenders will only accept a guarantor if they are a close relative, such as a parent or sibling.
What Are Your Other Options?
If you’re unable to get a mortgage without a job, there are still other options available to you. One option is to apply for a personal loan, which can be used for a variety of purposes, including buying a property.
Of course, personal loans usually have a shorter repayment term than mortgages, so you’ll need to ensure that you can afford the repayments.
Another option is to apply for a government grant or loan. These are typically only available to first-time buyers or those on low incomes, but it’s worth checking to see if you’re eligible.
Finally, you could also consider renting a property instead of buying one. This can be a more affordable option, and there are a number of different tenancy agreements available that can offer flexibility.
Can You Remortgage If You Are Unemployed?
If you’re currently unemployed, you may be wondering if you can remortgage to a better deal. The answer is yes, you can remortgage even if you don’t have a job.
However, it’s worth bearing in mind that most lenders will require you to have a source of income in order to qualify for a remortgage. This could be in the form of investment income, rental payments from property that you own, pension income or even child support payments.
If you can show the lender that you have a reliable source of income, they may be more willing to offer you a remortgage.
How Long Do You Need To Be In A Job To Get A Mortgage?
Most lenders will require you to have been in your current job for at least 3 months before they’ll consider you for a mortgage.
In some cases, you may be able to use your income to get a mortgage if you have a contract of employment or a letter from your employer, as proof of your income.
Of course, the longer you’ve been in your job, the better your chances of being approved for a mortgage. This is because lenders like to see a history of employment when assessing mortgage applications.
Can You Get A Mortgage With Savings But No Job?
If you’re currently unemployed but have a good amount of savings, you may be wondering if you can use these to get a mortgage. The answer is yes, you can get a mortgage with savings but no job.
However, it’s worth bearing in mind that most lenders will only lend up to a certain percentage of the value of your savings or investments.
So, if you have a large enough sum of money saved up, some lenders may be willing to give you a loan based on this.
The best thing to do in this situation is to speak to a mortgage advisor. They will be able to look into your individual circumstances and advise you on the best way to proceed for your case.
Do You Need 3 Months Payslips To Get A Mortgage?
Most lenders will require you to provide 3 months’ worth of payslips in order to assess your application. This is because payslips show your regular income, which is an important factor for lenders when considering a mortgage.
If you’re self-employed, you may be able to provide alternative proof of income, such as tax returns or accounts from your business.
However, there are ways to get a mortgage without payslips. This includes having a contract of employment or a letter from your employer, or evidence of other income or savings that will enable you to keep up repayments of your mortgage.
Of course, the more evidence you can provide of your income, the better your chances of being approved for a mortgage.
The Bottom Line
If you don’t have a job, it doesn’t mean that you can’t get a mortgage. There are a number of different options available to you, although you may find that the lenders who are willing to give you a loan are greatly reduced.
Before applying for a mortgage, it’s important to consider all of your options and compare the different deals available. Speaking to a mortgage advisor is a great option to explore your options and work out the best way forward. This will help you to find the best deal for your individual circumstances.
In this article, we have answered the question ‘can you get a mortgage without a job?’, as well as exploring some of the most commonly asked questions on this topic.