Are taxi driver mortgages easy to get?

The self-employed need mortgages, too – yet they may find it difficult to secure the loan needed to buy their own home.

Along with other self-employed workers, taxi drivers are likely to encounter problems in getting a mortgage because of the difficulties in providing proof of income – something required by any mortgage lender as a test of the affordability of the loan.

How much does a taxi driver earn?

There are all manner of taxi driving jobs available. Because of the sheer range of work, in many different parts of the UK, it is relatively difficult to establish an average annual salary.

The website Indeed, for instance, cites an average of £32,562 a year – an encouraging 12% above the national average wage. From a smaller sample of drivers, the website Glassdoor, on the other hand, found the national average income for a taxi driver to be £25,084 – although some drivers claimed to be earning up to £49,000.

Taxi driver mortgages …
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Can I get a mortgage using latest years’ accounts?

By the end of 2019, more than 5 million people in the UK were self-employed, according to the latest figures from the Office for National Statistics (ONS). This represents an increase of 1.8 million self-employed since 2000. And the self-employed currently account for 15.3% of the total workforce – up from just 12% in 2000.

The prospects for self-employed mortgages, therefore, remain a keen interest for a significant proportion of the population.

The good news is that the market has changed sufficiently to encourage some – but not all – mortgage lenders to accept just a year’s worth of accounts from a self-employed applicant for a mortgage advance.

Why can it be challenging to find self-employed mortgages?

History suggests that if you are self-employed, you are going to have a harder time getting a mortgage. The problem comes down to the relative difficulty you face in convincing any prospective lender that you have a sufficient and reliable…

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What are CIS scheme mortgages?

If you work as a self-employed contractor, you may find it challenging to get a mortgage. That is where so-called CIS scheme mortgages may help. It is important to note that there is no actual CIS mortgage product – rather, it is about the applicant being a member of the Construction Industry Scheme (CIS).

This article will explain:

the structure of the construction industry;why self-employed contractors may have difficulty getting approved for a mortgage;how the CIS works;getting a mortgage.

Let’s dive in …

The construction industry in the UK is structured rather differently to many other sectors. It relies on a complex network of relationships between contractors and subcontractors.

At its simplest, contractors pay subcontractors for construction work they do. Many different firms and organisations may pay other businesses for the construction work they do. Often, those contracting businesses are themselves paid by other business…

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