When you have your heart set on moving home, whether because you want or need to, if your current financial situation is unlikely to get you the mortgage you need, consider ways you can strengthen your application. Alternative income sources can be worthwhile and help increase your chances of being accepted.
Types of alternative income sources
By alternative income sources, we mean remunerations that aren’t purely from paid employment with one company alone. Traditionally, this has been considered the most favourable method by lenders, and whilst this remains true, there are other sources of income that are becoming accepted more frequently.
The types of alternative income sources you may be able to leverage include:
- Freelance earnings
- Bonuses
- Commission
- Non-taxable income, for example, trusts
- Government benefits
- Child maintenance
- Pensions
- Rental income
- Unencumbered property
- Investments
- Stocks and shares
- Physical assets, such as cars or jewellery
- Multiple sources (complex income)
If you are a temporary, part-time or zero-hours contract worker, or you’re self-employed, a sole trader or Limited Company director looking for a mortgage, you’ll be more likely to need to find ways to prove you can afford to pay the mortgage.
