Strive secures mortgages for actors. We have whole-of-market mortgage access and offer bespoke lending solutions for both residential and investment properties. Our clients include actors and entertainers from across the industry, including high-profile performers. We offer first-class service and are the first choice for many in this profession looking to secure property finance.
Challenges of securing a mortgage in the entertainment industry
While there’s no doubting the allure of the acting and entertainment world and the potentially lucrative earnings, the nature of the work can present challenges when securing a mortgage. Mortgage lenders prefer stability and certainty, and while the acting world can generate decent income streams, it’s not always stable and can fluctuate enormously. Many actors are self-employed or on short contracts and may have busier years than others. Evidencing a stable income can sometimes be a challenge.
Are there specific mortgages for actors and entertainers?
While there are not necessarily specific lenders exclusively for actors, when we refer to them, we mean lenders that cater to individuals in this profession and understand the challenges and nuances they may face. These lenders may offer mortgage criteria that are more suitable for actors.
Income assessment for actors mortgages
The income assessment for entertainer mortgages will vary significantly depending on the lender’s criteria and your specific circumstances. For example, if you’re self-employed, most mortgage lenders will insist on a minimum of 2 years of trading history. If your income is on an increasing trend, they usually average the last 2 years’ profits. If your income has fluctuated in the last 2 years, this may impact your borrowing amount. Some lenders will consider just one year of self-employed accounts, particularly if you have a track record in the industry.
If you’re an entertainer or actor on a contract, you may be able to borrow based on the annualised gross value of the contract. For example, if you earn £1,000 per week, you may be able to borrow based on a £52,000 salary, although you may need a minimum time contracting or a minimum time remaining on the contract, such as 6 months.
Mortgage criteria for actors
The requirements will vary among lenders. Here are a few points for self-employed or short-term contracting actors:
- Deposit: At least 5% is normally required. More may be required depending on criteria, affordability and credit score.
- Self-Employed: Usually, 2 years of self-employment history is needed, though some lenders may consider 1 year.
- Fixed/short term Contractors: Mortgage lenders Prefer at least 2 years in the line of work and/or 6 months remaining on the current contract or future contracts lined up. High-value contractors earning above £500 a day or £75,000 per year may have more leniency.
How much can I borrow?
The amount you can borrow will depend on several factors, including your credit score, income type, and deposit level. Typically, you can borrow 4.5 to 5 times your income. However, up to 5.5 times your income may be available to some, generally those with higher incomes, such as above £100k. If you’re a contractor, you may be able to borrow based on your annualised day/week rate. For self-employed individuals, lenders may require a 2 to 3-year average of your income.
Can I Get a Mortgage with 1 Year Self-Employed?
Yes, it’s possible to get a mortgage with just 1 year of self-employment, but the choice of lenders will be limited, as most prefer 2 or 3 years of income history. Where possible, it helps to have previous experience in your profession and/or accountants’ projections for the second year to show that your earnings are not just a one-off.
What income Documents are required?
Speak to an Expert
The documents required will depend on the lender and your income setup. Self-employed sole traders will usually need 2 years of SA302s and overviews. Company directors will need 2 years of accounts. Contractors will typically need their latest and previous contracts, as well as payslips if available.
What if had a gap in employment
It’s accepted that work is not usually guaranteed in this line of work, and gaps in employment are expected. If you’re on a break when you apply and are classified as self-employed, lenders will usually average your earnings over 2 years, so it shouldn’t pose too many challenges. If you’re contracting and looking to be underwritten in this way, you will need to be in a contract or have one lined up at the very least.
Who Are the Best Lenders for Actors?
The best lenders for actors depend on individual circumstances. They could be high street lenders, specialist lenders, or private banks for high net worth entertainers or actors. The best approach is to speak to a specialist mortgage broker for actors, like Strive, to give yourself the best chance of securing a good deal and improving the success of your application.
Strive, expert actor mortgage brokers
At Strive, we specialise in arranging mortgages for actors and entertainers. Over the years, we have formed close relationships with lenders who specialise in helping clients in this line of work. We’ve secured millions in lending and helped many in the industry achieve their property aspirations. If you’re in the entertainment industry and want to know your mortgage options, get in touch and one of our expert team members would be more than happy to help.
Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.
For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
