Mortgages for Airline staff & Cabin crew

As a professional broker, we can secure mortgages for pilots, airline staff and cabin crew from high street banks, building societies, private banks and exclusive broker-only mortgage lenders.

Mortgages made easy for airline staff and cabin crew with Strive Mortgages

Mortgages for airline crew can differ from those for people in other occupations.

Typically, airline crew members earn a base salary, along with additional compensation for things like flight time and per diems. This compensation can vary greatly depending on the number of flights taken, the distance travelled, and other factors. Because of this, it can be difficult for lenders to accurately determine an airline crew member’s income for mortgage purposes.

However, whilst this does present some challenges, it’s certainly not impossible. It simply means that borrowers may need to be more realistic about their financial situation and work closely with their broker to ensure that they can secure a mortgage with a lender that meets their needs.

At Strive Mortgages, we work with a wide range of lenders who are more than willing to listen to your personal circumstances – and more than that, we already have the experience of providing mortgages for those in the airline industry.

Which airline staff are eligible for mortgages?

Most, if not all, lenders consider mortgages for airline staff. There are no special mortgage products exclusively for pilots or airline crew members. When we talk about mortgages for airline staff, we are generally referring to the specialist criteria the lenders offer rather than specific mortgage products for airline staff.

Some lenders take a more favourable view of their situation and understand the nuances of securing a mortgage for airline staff.

How much deposit is needed for mortgages for airline staff

Getting a mortgage with a 5% deposit is possible, but it can be more difficult than getting a mortgage with a larger deposit.

How do Mortgage Lenders Assess Airline Staff Income?

One of the key factors that lenders will look at when assessing an airline staff borrower’s income is the stability of their employment. This is because some airlines may experience periods of low demand

Assessing airline staff income average over 3 months is a common practice for mortgage lenders when considering a borrower’s income for loan eligibility. The lender will typically require the borrower to provide their most recent pay payslips.

Some lenders will take 6 or 12-month averages, and some will take an average over the last two years. To calculate the borrower’s average income over the past 3 months, the lender will typically add up the total income earned during that period and divide it by 3 to get an average monthly income.

When assessing airline staff income for mortgage eligibility, some lenders will consider the borrower’s entire compensation package, including base salary, flight pay, overtime, and other allowances or benefits. However, different lenders may have different policies when it comes to which components of the borrower’s income they consider.

For example, some lenders may only consider the borrower’s base salary when calculating how much they can borrow, others lenders may only take into account a percentage of the borrower’s flight pay.

What if my last 3 months earnings have been lower than usual?

If an airline staff borrower has had a quiet period with less overtime or other variable income over the past 3 months, then a lender that averages payslips over a longer period of time may be better for them. This is because averaging over a longer period of time can help smooth out any fluctuations in income and provide a more accurate picture of the borrower’s overall income stability.

For example, if an airline staff borrower typically earns a high level of overtime pay during the summer months but has had a quiet period with less overtime over the past 3 months, a lender that only considers the most recent 3 months of payslips may not accurately reflect the borrower’s true income potential.

However, a lender that averages payslips over the past year or more may provide a more accurate assessment of the borrower’s income potential.

For example, the customer below applies for a mortgage after their December payslip. A lender taking an average of the latest 3 months’ payslips would only have £3,520 allowable flight pay/overtime, however, over a year, they earned £11,202 in flight pay. A lender would then consider a 12-month average will be far more preferable in this scenario.

The reverse is true if the customer has had a particularly good 3 months compared to the rest of the year, a lender that considers the latest 3 months’ payslips May be more suited.

Monthly Flight pay & overtime

Latest payslip first:

December – £350
November – £280
October – £250
September – £800
August – £1,340
July – £1,423
June – £1,569
May – £980
April – £970
March – £990
February – £1,020
January – £1,230

• Annualised flight pay – £11,202
• Most recent 3 month average- £3,520 annual equivalent (£350 + £280 + £250) / 3 x 12

Will mortgage lenders take all my flight pay?

Some lenders are more generous than others when it comes to using flight pay for airline staff.

For example, some mortgage lenders will use 100% of the flight pay and allowances for mortgage affordability, others may be more conservative and use 50-65%, some may consider even less than this. Choosing a lender that looks more positively at your flight pay and allowances can make a massive difference.

For example, a customer earns a basic salary of £20,000 and has flight pay and allowances totalling £12,000 per year.

Let’s assume a lender is offering 4.5 times income, a lender accepting 100% of the flight pay and allowances would lend £144,000 compared to £117,000 if they only accept 50% of the extra income.

Mortgages For Flight Attendants With Irregular Income

The mortgage affordability and criteria for flight attendants is the same as for most other airline staff.

As we mentioned some lenders will view your income more favourably than others and the period they average your earnings over will differ. Whilst it’s common for mortgage lenders to accept a 3-month average of a customer’s commission, some lenders conduct ‘sense checks’ to ensure the payslips are a fair reflection of the customer’s earnings.

For example, a customer earns an annual basic salary of £20,000 and has been earning around £1,000 in monthly flight pay and allowances for the past 3 months. Some lenders will annualise the commission and treat, as £12,000 income. They may use all the commission income or sometimes a percentage of it income into consideration.

In this scenario the total annualised income for this customer when using a 3-month average would be £32,000. (Basic salary + annualised commission). Some lenders will then cross reference this with your P60 or your year-to-date earnings. If the income earned over your 3-month average is not reflected on your P60, lenders may choose to take the lower earnings on the P60 or use a smaller percentage of the commission.

This isn’t always the case but worth ensuring you check with the lender before applying.

How much can I borrow?

The amount that airline staff can borrow on a mortgage would depend on various factors, including their income, credit score, employment history, and the lending policies of the mortgage provider they are applying to.

Finding a lender who accepts all of your flight pay can increase your chances of obtaining a mortgage, especially if a significant portion of your income comes from flight pay.

As a general rule, mortgage lenders will lend around 4-5x income, although this will vary depending on your individual circumstances. Those on higher incomes, for example pilots, may benefit from increased income multiples higher than 5 x income.

Mortgages for Pilots 

Being a pilot can be a lucrative and well-respected career, however for some they may face certain challenges when it comes to getting a mortgage which include;

Pilots face several challenges when it comes to getting a mortgage. These include:

• Working for an international company and being paid in a currency other than sterling, which
  can make it difficult to prove income and affordability.
• Being a non-UK taxpayer if they spend more than 180 days outside the UK each year. This can complicate matters as some lenders may not consider all of their income and allowances.
• Some banks may not consider the income and allowances of pilots who do not pay UK tax, which can limit their options for obtaining a mortgage.

These challenges can make it difficult for pilots to find a mortgage lender that understands the nuances of their job and income. However, there are mortgage providers that specialise in offering mortgages to pilots and other aviation industry professionals, and they may be better equipped to navigate these challenges.

Can we get joint airline or pilot mortgages?

Yes, it is possible to get a joint mortgage as an airline or pilot couple. In fact, many lenders offer joint mortgages specifically tailored to the needs of couples who work in the airline industry.

A joint mortgage allows two or more individuals to apply for a mortgage together, combining their incomes and assets to increase their borrowing power and improve their chances of being approved.

When applying for a joint mortgage, both individuals’ incomes and credit scores will be considered, and the lender will assess the combined debt-to-income ratio of the applicants. This means that even if one person has a lower credit score or income, they may still be able to qualify for a mortgage if their partner’s financial situation is strong.

Cabin Crew Mortgage With Poor Credit

It may be more difficult to obtain a cabin crew mortgage with adverse credit , as lenders typically consider an applicant’s credit score as an important factor in the mortgage application process.

However, it is not impossible to obtain a mortgage with bad credit, as some lenders may be willing to work with borrowers who have less than perfect credit. If you have bad credit and are seeking a cabin crew mortgage, there are several steps you can take to increase your chances of being approved.

These may include:

• Improving your credit score: This can be done by paying off outstanding debts, making payments on time, and disputing any errors on your Credit Report.
• Saving for a larger deposit: A larger deposit can reduce the overall amount you need to borrow and can make you a more attractive borrower to lenders.
• Seeking out lenders who specialise in bad credit mortgages: There are some lenders who specialise in working with borrowers who have bad credit, and they may be more willing to approve your application.
• A Guarantor: Finding a guarantor or If you have a family member or friend with good credit who is willing to join your mortgage can increase your chances of being approved.

What documents will I need to provide? 

As airline staff, the specific documents you will need for a mortgage may vary depending on the lender and your individual circumstances.

However, some common documents that most lenders will require include:

• Identification: You will need to provide a valid form of identification, such as a passport or driving license.
• Proof of address: You will need to provide proof of your current address, such
  as a recent utility bill or bank statement.
• Bank statements: You will usually need to provide your last three months’
  bank statements. Some lenders may require more if you have variable pay.
• Proof of deposit: You will need to provide evidence of your deposit, such as a
  bank statement or a gift letter from a family member.
• Payslips: You will typically need to provide your last three months’
  payslips. If you have variable pay, some lenders may require six to twelve
  months’ payslips and a P6 form to confirm your earnings.
• Letter from your employer: Some airlines may offer a letter confirming a breakdown of your total income earned throughout the year. This can be useful in demonstrating your income to lenders.

How can Strive Mortgages help with mortgages for airline staff & cabin crew?

Strive Mortgages offers expertise and experience in arranging mortgages for airline staff. We can help you navigate the complex process of getting a mortgage and give you the best chance of success with your application.

Here are a few ways Strive can help:

• Finding the best mortgage deals: A mortgage broker has access to a wide range of mortgage products from different lenders. They can use their expertise to help you find the best deal that suits your financial situation and needs.
• Saving time: Instead of spending time researching different lenders and their products, a mortgage broker can do the legwork for you. They can help you complete the paperwork and keep track of deadlines, saving you time and effort.
• Providing expert advice: Mortgage brokers have a deep understanding of the mortgage market and can offer expert advice on the different types of mortgages available, the pros and cons of each, and which may be most suitable for you.
• Access to exclusive deals: Some lenders work exclusively with mortgage brokers and offer better deals that may not be available to the general public.
• Negotiating better terms: Mortgage brokers can negotiate on your behalf with lenders to help you get better terms, such as a lower interest rate, reduced fees, or flexible repayment options.
• Support throughout the mortgage process: A mortgage broker can guide you through the entire mortgage process, from the initial application to the final closing. They can also provide ongoing support and advice throughout the term of your mortgage.

For more information on mortgages for airline crew and pilots, please contact a member of the Strive team, by emailing info@strivemortgages.co.uk or call us on 01273 002697.

Frequently asked questions about mortgages for airline crew and pilots