Summary
Who can apply for a mortgage without proof of income
Yes, there are certain customer profiles that can access a mortgage, even if they don't have a regular payslip.These are people with recurring income, such as the self-employed. A self-employed person does not have a regular payslip; their income comes from their economic activity.
These income streams may vary each month, but if they are sufficiently stable and recurring, they will serve the same purpose as a salary. In fact, that's precisely why mortgages for the self-employed exist; they take into account the specific needs of this group.
Another group without a salary, but with income, are pensioners. A pensioner more than adequately fulfills the requirement of having a fixed, recurring, and, above all, reliable income.
So much so that few sources of income are more secure than a public pension.
Their biggest drawback can be age and the repayment term. In other words, the age limit for taking out a mortgage. Most lenders don't grant mortgages beyond age 70. This means the loan term will be the number of years from when you take out the loan until you turn 70.
The same applies to mortgage life insurance, which isn't mandatory but can be a good form of protection. In most cases, new policies aren't permitted after that age, or even earlier.
There is also a profile of people who earn income from investments or rentals but don't have a salary, yet do own assets. For example, someone with several rental properties or who manages their wealth and invests.
Finally, there are those who do have a salary but don't want to link it to the bank granting the mortgage. For them, there are mortgages without such a requirement, starting with those offered by financial institutions that are not traditional banks.
Is it possible for me to get a mortgage without proof of income?
The answer is a resounding yes. You can get a mortgage without proof of income as long as you have a regular income, assets that can serve as double collateral for the loan, such as another property you own, or a guarantor.From there, personal circumstances can dictate the mortgage term and the amount financed. For example, a 62-year-old pensioner might request a mortgage for between three and seven years, which typically won't cover a very high percentage of the property's value.
Meanwhile, a self-employed person or someone who does not want to have their salary paid directly into their account can obtain a mortgage under similar or even better conditions than an employee with their salary and payroll.
Requirements for mortgages without proof of income
The requirements for mortgages without proof of income do not differ much from the conditions of a normal mortgage.What the financial institution wants to know is that you will be able to repay the loan. For this reason, they will ask you to provide proof of income with:
- Information about your professional activity if you are self-employed, including your latest VAT returns. If you are a pensioner, it will ask for your latest pension statements.
- Bank account statements to review expenses and income
- Latest income tax return, again, to confirm your income level
- Working life
- Property deeds, in case you want to use them as a double guarantee
To this you must add the rest of the documentation for the mortgage, such as the details of the property you want to buy, the simple land registry note and the appraisal value, when the time comes.
Ultimately, it's about certifying that you will be able to meet your obligations, whether or not you have a salary.
