Understand how lenders assess your employment status and income to determine your creditworthiness and ability to repay the loan. Lenders typically require proof of stable income and employment for at least 6-12 months before approving a secured loan.
Be prepared to provide proof of income, such as pay slips, tax returns, or bank statements, to support your loan application and demonstrate your financial stability. Self-employed borrowers may need to provide additional documentation, such as business accounts and tax returns.
Consider how the type and length of your employment may impact your interest rate, as lenders may view certain professions or contract types as higher risk. Freelancers and contractors may face additional scrutiny when applying for a secured loan.
Factor in any potential changes to your employment or income, such as a job change or retirement, and how these may affect your ability to secure a favourable interest rate. Lenders may require explanations for gaps in your employment history or changes in your income.
Explore specialised lending options or products tailored to your employment status, such as self-employed mortgages or contractor loans, that may offer more flexible terms and competitive rates. Some UK lenders, such as Kensington Mortgages and Bluestone Mortgages, specialise in lending to self-employed borrowers.