In This Article
How are Uber drivers paid in the UK?
As an Uber driver, you will be self employed which can make getting a mortgage more difficult than perhaps someone that is on the payroll of an established business.
You will likely have regular hours but similar to that of a taxi driver, being self employed your accountant may have deducted business costs from your turnover resulting in it seeming that you have earned less than perhaps an employed person. This can sometimes seem unfair as an employed person may also have these costs in day to day life of going to work but these are paid from their net income instead.
Mortgage lenders will want to get an idea of how your income / work is made up through driving for Uber and a view of what is expected in the future from that position.
They will want to know your profits from driving for Uber and assess what the income looks like monthly to see if you are on track to meet similar numbers again.
Depending on the numbers, it is certainly possible for an Uber Driver to get a mortgage.
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What are the challenges for an Uber driver looking for a mortgage in the UK?
As an Uber driver, most often you will be self employed which can make things more difficult to get a mortgage. This is not always the case and going to the right lender can help you.
Your business accounts, bank accounts and personal accounts are likely to be requested to get an overview of how your Uber driving business is doing.
Lenders can be quite thorough when assessing the income of a self employed person and they always want confidence in how the business is likely to perform in the future. They will look at patterns, make sure income is remaining steady and may also want to know how you were affected by external factors, e.g. the COVID pandemic. Find information from Uber about your taxes.
How many years of accounts do Uber drivers need to get a mortgage in the UK?
The most frequently required amount is two years although there are lenders that can consider applicants with just one year of accounts. With some of the lenders only needing one year of accounts, they may wish to know more about what you were doing before this position to gain confidence in your sustainability in running your Uber business.
Some lenders will average income, some will use the latest year and some would use net profits of a limited company rather than dividends (if you are set up as a limited company). Your mortgage adviser would assess your numbers and then pick a lender accordingly based on these.
It’s not impossible that your lender may need to communicate with your accountant for further details of your business, support taken during COVID, outstanding business loans, confirmation of numbers and projections going forward.
If you plan to handle your tax yourself, you can find out more by visiting the website for HMRC.
How much can I borrow as an Uber driver in the UK?
It will depend on the lender, if you are a sole trader they would use your net profit before tax and lend on a multiple of this, up to a maximum of perhaps five times this profit. There is a lot more to take into account though and when assessing affordability so your mortgage adviser would confirm this.
They would need to look at factors such as your deposit amount, any dependants, loan balances, card balances, car leases, monthly payments and overall credit score to get an accurate idea of what you may be able to borrow.
Would I need a specialist lender to get a UK mortgage as an Uber driver?
Not always, high street lenders can lend to Uber drivers like any other occupation and would usually view the case in a similar way to assessing a taxi driver. How you are paid, your profits, credit file, debts etc are all other factors an adviser will assess when deciding whether you would need a mortgage from the high street or a specialist lender so best to always get advice.
Usually, a high street lender would have more competitive products than that of a specialist lender so let your adviser work out your options for you.
What documentation would I need to provide to a lender to get a mortgage as an Uber driver in the UK?
A self employed Uber driver would be likely to be required to need business accounts, tax documents and bank statements for both the business and personal use.
It may be that the lender needs to write to your accountant for a more in depth overview of your business but this is not always the case.
Each lender may have a different requirement and your mortgage adviser would confirm the required documents.
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Can I get a buy to let mortgage for a UK property working as an Uber driver?
Yes, if you are working as an Uber driver, there is no reason why you would not get a buy to let mortgage. Buy to let lenders have different criteria around income, experience, deposit required, credit etc but your role as a self employed Uber driver will be viewed like any other position. Lenders will want to know the financials and be comfortable all meets criteria but there is no reason it would affect you from getting a buy to let mortgage if all is well.
If you do plan to buy an investment property, the rent will need to be declared to HMRC. Find out more about a Buy To Let Mortgage For Self Employed.
My Uber business struggled during COVID, can I still get a mortgage?
How COVID affected a business is viewed differently from lender to lender. For example, if you took grants due to your Uber business struggling as a result of not being able to transport customers, some lender will deduct the grants from the profits of the business and calculate affordability on this end number.
Others may do the opposite and allow them to be included within the profit as long as they are comfortable the financials are back where they should be and the grants were just bringing the profit up to the usual figure.
This is a subject where you should really take advice as a professional mortgage adviser can look at the full picture and look to approach a lender that can accommodate your situation. If you would like I NEED ADVICE to arrange this, please complete the contact box.
I am a UK Uber driver with bad credit, will I qualify for a mortgage?
It will depend on many other factors and each lender will look at things differently. Your role as an Uber driver will not be so relevant but more the details of the bad credit. e.g. it may mean missed payments, defaults, debt management plans, CCJ’s, bankruptcies etc) your credit score, your deposit, your income, the strength of your business, commitments and dependents.
If the only solution is an adverse credit mortgage, it will be likely that the rates and fees for this type of mortgage are higher than that of a prime high street lender.
Bad credit mortgages are complex mortgages so best to speak with a professional mortgage adviser that can analyse the situation and work out any options that you may have.
If you believe you may have bad credit, perhaps get a copy of your credit file from websites such as Experian, Equifax, Transunion or Check My File which offers a free trial.
Conclusion
As the article has hopefully made clear, if you are an Uber driver in the UK looking for a mortgage, this is totally possible. It will be down to the strength of your business and your personal situation. So speaking with a mortgage adviser that can explain your options is always best. If you would like I NEED ADVICE to arrange for a professional mortgage adviser to tell you your options, please complete the contact form.
They are experienced, which can boost your chances of being approved.
