Mortgages For People Who Work In The Gig Economy

Today`s work placement is changing, with more and more people working in the gig economy. These tend to be those who are employed on short term contracts or bid for work for a set period of time. Gig workers are typically: online service providers, self employed / fixed term contractors, workers without set hours who are called in when needed and temporary seasonal workers - such as fruit pickers or Christmas support staff. Without having a structured `regular` job / employment it can be difficult to get approved for a mortgage or remortgage. That being said similar lending rules apply to those of us bidding for jobs on an ad hoc basis to those of us who are self employed.

Evidencing Your Income For Mortgage Approval

One of the biggest factors is being able to evidence your income for at least the last two years. Tax returns to HMRC are a good way of proving what you have earnt and declared. Such returns are acceptable by mortgage lenders as proof of your useable income. If you are working in the gig economy it is important that you keep track of your monthly / weekly income and have the figures on hand. Put all monies received into an account as this is the only real way to show it is genuine.

It is true of any mortgages that lenders need to be reassured that you are able to keep up with the mortgage repayments. Although there is new language being used to describe these modern jobs (such as `GIG` working) the basis of lending is very similar to traditional borrowing of people who are self employed. Lenders want to see how much you have earnt over the last two years, alongside some evidence of continuity in money coming in. Likewise servicing your bills such as credit items, utilities, mortgage / rent, car payments etc properly and on time is a big plus when assessing your ability to service a mortgage.

First Choice Finance have over thirty years experience arranging mortgages for those of us who are effectively self employed, have less traditional forms of income or have incurred some adverse credit. To get the facts and figures for your scenario simply enquire via our short on line enquiry form or call our mortgage team for free on 0800 2983000. Your enquiry will be looked at by a fully qualified mortgage adviser, with lots of experience in finding and advising clients on the most suitable mortgage deals.

Growth Of The GIG Economy

The gig economy is becoming favoured by both employers and employees, the benefits of employing people on short term basis and not having to pay National insurance and other employment related taxes is clearly a win for companies. While from the employees stand point they have flexibility of working hours, holidays and picking and choosing the jobs that they wish to apply for and undertake. The downside of a gig job is that neither the company nor employer have the security of traditional employment. This is due to the loose ties working on gigs encouraged between firm and employee. It can also result in less trust or praise when completing a job. Another downside is that in some sectors of the gig economy competition is fierce and you may be competing against people from all around the world, whom are often able to charge less for their services.

Getting Work In A Gig Economy

In 2019 research by Hertfordshire University reported about 10% of the UK working population worked in the gig economy. It is is growing fast, in fact doubling over the last three years, this will probably see an even larger increase in the current economic climate.

Notable companies in this field include Uber, Lyft, airbnb, JustEat, TaskRabbit, Fiverr, Amazon. Gig jobs can fall in to two categories, larger companies such as Uber, Amazon & Just Eat have a large selection of jobs available and often put jobs out to approved personal with the wages depending on how many people are after that specific job, often the longer the job is listed the higher the company will pay to have the task carried out. Whether this is a delivery, cleaning or pickup. Other gig jobs are more detailed with websites dedicated to promoting your work and matching companies with correct skilled personnel to complete the task on offer, these jobs often are not only gained via jobs but also given depending on business reviews alongside personal reviews.

Just because the gig economy is growing traditional methods of finding work are still of use. Recommendations are as good as ever, as well as traditional work websites and other marketing channels. It is important to note when using gig websites to find work, these websites will usually take a percentage of the income as a commission.

Also in some cases such as Uber, because of the nature of the work i.e. being the sole source of income to the employee, some of these gig jobs are becoming more traditional through legislation or law. A tribunal ruled that Uber drivers were to be classified as workers instead of independent contractors and as such were entitled to certain staff benefits. When looking at the gig economy it is important that you fully understand all tax and employee aspects, as well as fully comprehending how the company treat their gig workers.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.