What are the Different Employment Mortgages?

Employment mortgages are available to people whose work is not like the normal people have. These mortgages allow workers who cannot qualify for conventional loans borrow money that they can use to buy a house.

There are so many types of employments right now. With the ever-changing landscape of the workforce, you can no longer expect to see people who have 9 to 5 jobs. Today, there’s so much more.

There are different types of workers and they do not necessarily need to be tied up to a certain company. Some prefer to work for themselves and, surprisingly, make more money than they would if they stayed with a company.

Casual workers, contractors, freelancers, sub-contractors, and others are currently enjoying not just great pay but flexibility. For a lot of people, it is very important that they still get the time to do things that are not work-related. They want to be able to set aside some time to spend with family or do things that interest them.

There are many benefits to taking control over your work. By being able to choose the time you work or the projects you want to work on, you allow yourself to make a good living by doing something that is close to your interests.

But there could be some downsides. One of them is the difficulty in obtaining a conventional loan.

If you are thinking of buying a house, you might find it challenging to get approved for a loan because of the nature your of work. Generally, lenders are strict when approving loans. They look for someone who can prove the ability to repay the loan and minimize the chances of defaulting on the loans.

They want someone who can assure them that they will be able to meet the monthly mortgage repayments. It’s something they take seriously because for each borrower that fails to make repayments, lenders incur losses. This is why they screen loan applications carefully—to make sure that only those who meet the requirements are granted loans.

Ideal candidates for loans are those who have regular income. That means you need to ensure you can provide documents that would prove you have a job that will provide you with the money to pay the loan.

Lenders want to make sure that you have a regular (or permanent) job. Why? That just goes to show that you will have a source of income for the coming years, which also means you will be able to repay the loan.

Most people get refused loans because they cannot prove they have the financial ability to pay back the loan. But sometimes, there are people who make enough, sometimes a lot, of money that makes them able to afford a house. The only problem is they do not have the typical 9 to 5 job, which is what’s considered a stable job by most people.

These people with unconventional, or unusual, employment will often find it hard to get approved for loans because they will not be able to submit documents like pay slips or tax returns to prove that their job will allow them to earn enough to repay the loan.

Contractors, freelancers, and casual workers are examples of this. They may not have a job that requires them to come to work every day, but these people can make enough money, sometimes even more than people with regular jobs, to pay for a house.

But because they cannot provide the necessary documents, lenders will think of them as high risk and, therefore, deny their application. But not all lenders are this strict. There are some who will offer people with unusual jobs mortgages no matter what their employment is.

The following are examples of employment mortgages:

Casual employment mortgage

Bonus income mortgage

Unusual employment mortgage

Mortgage without pay slips

These types of mortgages will offer specific employees the chance to buy a house despite not having all the requirements conventional lenders ask for. With the help of a good mortgage broker, you should be able to find a lender that will let you borrow as much as 90% of the property value.