Can an Apprentice Get a Mortgage?
Whether you’re currently an apprentice or are exploring your options, it’s helpful to understand mortgages and apprenticeships. We know that deciding to get onto the property ladder is a big step, and it can be a very daunting process. Have a read of our guide of everything you need to know about getting a mortgage as an apprentice.
Can I still get a mortgage if I’m doing an apprenticeship?
Yes, it is possible to get a mortgage as an apprentice. An apprenticeship is a real job, just like any other. And this means that there are no separate rules for apprentices looking to get a mortgage. Mortgage lenders will treat you in the same way as any other person with a job. However, there can be some complications related to salary and the length of your contract.
What apprentices need to know about buying a home?
Apprenticeships are available from Level 2 to Level 7, which are vastly different in terms of skill and qualification standard. It’s important to remember that not all apprenticeships are the same, and two different apprentices could have vastly different incomes. Having said this, many entry-level apprenticeships do start at a lower income than regular jobs, as an employer is investing in your progression and growth within the business. Which means that as an apprentice you may be on a lower salary than many mortgage lenders are asking for.
While the apprenticeship minimum wage currently stands at £4.15 an hour, which for a full-time job would amount to roughly £8,200 a year, the majority of apprentices get paid much more than this. And many businesses offering higher-level apprenticeships, such as degree level, offer very competitive salaries.
While mortgage lenders are concerned with your income, it is not the only factor that helps make their decision, and being in a lower-income position does not eliminate you from getting a mortgage. Apprentices must understand that all mortgage lenders have different minimum income requirements, and some don’t have any at all.
As well as your income, mortgage lenders will be considering other factors and details, which might help apprentices get a mortgage, such as your credit history, your outgoings, your deposit and the property value.
As well as your income, it’s essential you are aware that your fixed-term contract may cause some difficulty when applying for a mortgage. Mortgage lenders want to know that you will be able to keep up with your mortgage repayments long into the future, which means it’s preferable to have a permanent employment contract rather than a fixed-term. However, many apprentices continue with their employer in a permanent role after their apprenticeship finishes. This may be something you can discuss with your employer; they may be able to formally guarantee you a job at the end of your apprenticeship.
Tips for getting a mortgage as an apprentice
- If you are looking to get a mortgage with another person, such as your partner, you will be able to make a joint application meaning the mortgage lender will combine your incomes. This can be extremely helpful for low-income jobs as you are now supported by another person’s income and credit application.
- Living at home with your parents or carers while you do an apprenticeship is a great way to save money to help get onto the property ladder. As your training costs are covered, and you still earn a wage, you will be able to save some money you wouldn’t otherwise have to contribute towards a deposit later down the line.
- Finally, speak to a mortgage advisor if you have any concerns about your income or employment status as an apprentice.
For more information, visit our guides to who can do an apprenticeship and how to apply for one.