How Your Employment Status Affects Your Mortgage Approval in 2025

Your employment status plays a crucial role in whether a lender approves your mortgage. Here’s what you need to know in 2025.

Full-Time Employment (Permanent Contract)

✅ Best for mortgage approval – lenders prefer stability.
✅ Need 3-6 months’ worth of payslips.

Self-Employed & Freelancers

🔸 Challenges: Lenders require at least 2 years of accounts.
🔸 How to improve chances: Use an accountant to provide tax returns and proof of consistent income.

Zero-Hour Contracts & Agency Work

🔴 Some lenders reject zero-hour contract workers due to income uncertainty.
✔ Some lenders may approve if you have a stable income history for 12-24 months.

Part-Time & Fixed-Term Contracts

🔴 Some lenders hesitate with temporary contracts.
✔ If your earnings meet affordability criteria, you may still qualify.

How to Improve Your Chances Regardless of Employment Type

✔ Provide at least 6 months of payslips or bank statements.
✔ Maintain a good credit score.
✔ Save a higher deposit (10%+ gives you more options).
✔ Work with a mortgage broker to find lenders that accept non-standard employment types.

💡 Tip: If you’re planning to switch jobs, try to wait until after mortgage approval to keep your application strong.