Table of Contents
Introduction
Delivery drivers are essential for modern day companies. With the boom of e-commerce during the lockdowns of 2020 more and more drivers have taken up the career to help people get their important parcels delivered.
At DFMB, we understand that industries are changing as the world evolves and mortgages are keeping up. Mortgages for delivery drivers are out there. As a 5-star rated broker, we have access to over 90 UK lenders and over 13,000 mortgage products. We will do all of the work for you from start to finish, leaving you to get on with conquering tiktok.
What is a mortgage?
A mortgage is a large loan which is secured against an asset (the property). You repay this loan through monthly payments over a number of years and at the end of the mortgage term, you will own the home outright. Most people cannot afford to buy a house outright and use mortgages to purchase them.
How do I get a mortgage?
You can apply for a mortgage directly to a bank or through a mortgage broker. A mortgage broker will find the right deal for your circumstances and use their knowledge and expertise to get the best deal for you. They will explain every stage of the process and help you to make an informed decision.
How much deposit do I need?
The minimum deposit that you will need is 5% of the purchase price. For example, if the property you are looking at is £180,000 then you will need £9000. This can be from your own savings, or if you’re lucky enough, it can also be gifted from a direct family member.
The higher your deposit, the higher your chances of obtaining a mortgage. This is due to lenders having different scoring at different deposit levels. Ideally, you would want to have a deposit of at least 10%. if you have less than 10% don’t let that stop you from making an enquiry, you could be closer than you think.
How much can I borrow?
At the time of writing, first time buyers can borrow around 4.49x their income and next time buyers can potentially borrow up to 5.5x their income. This is all subject to affordability checks and will always depend on your individual circumstances. If you are buying jointly or have existing credit commitments then this can change.
What income will you use if Im Employed?
Looking at your payslip, we will use your Gross Annual Income. You can take your Gross monthly pay (before tax and national insurance) and times it by 12 to get the annual amount.
Some lenders will also take Car allowance, shift allowance, overtime, bonus and commission. Some lenders will take a percentage of this, it’s always best to contact us if you are looking to use additional income.
What income will you use if Im Self-Employed?
If you are self-employed then you will either be a sole-trader or you will be a director of a limited company. You will need an absolute minimum of 1 years tax year overviews and tax year calculations.
Having 2 years will be better and having 3 full years of tax returns will increase your chances further. Most lenders will want a minimum of 2 years and 3 years will show longevity, especially if your income is increasing year on year.
Every lender will use your net profit. This is after you have taken off your expenses.
If you’re unsure of where to start, why not contact us?
What income will you use if Im a Sole Trader?
We will look to use your declared net profit. This is after expenses but before tax. Every lender will use your net profit to calculate your affordability.
Some lenders will use an average of your net profit and others will take the latest year. If you have had a dip in income, then there will need to be an explanation so we can go to the bank and tell them why the income has decreased.
What income will you use if I run a Limited Company?
Most company directors take a small salary and dividends from the company. We will use these to check your affordability. There are some lenders out there that will use your company profit plus salary. Lenders will ask for an accountants reference and will most likely ask for 3 months business bank statements. It’s always good to have these to hand.
I have bad credit, can you help?
We work with lenders that will take into account people that may have had credit issues or blips in the past. If you have had any defaults, CCJ’s, missed payments or arrears within the past 6 years then this counts as bad / adverse credit.
The best thing to do is to get a copy of your free credit file so you can see what is on your credit report. Your mortgage broker will normally ask for a copy of this to help with their research. You should expect to increase your deposit but this will depend on your individual circumstances.
What else will I need to know?
Crucially, you will have to know your outgoings. This can include payments to car loans, PCP, Hire Purchase, personal loans, credit cards and other forms of personal credit, like Klarna.
You will be asked for the name of provider, balance, monthly payment and credit limits (for credit cards) and how long is left to pay. Not declaring any credit commitments can have a big impact on how much you can borrow and some lenders may decline your decision in principle.
What’s the first step?
The first step is to fill out the enquiry form and have a free initial consultation with an experienced mortgage broker.
There are mortgages for delivery drivers out there as long as you meet the affordability criteria above. By the end of this call you will be able to see if you are ready to start your mortgage journey with us.
