The hospitality sector has been hit the hardest when it comes to coronavirus lockdowns and this has been a major problem for those who are looking for a mortgage. Many people have been relying on furlough income to try and get them through this tough period. Some hospitality staff also have tips to help them to bump up their wage, but the issue with this is that some lenders only take into account 50% of tips when it comes to general affordability. If you want to get a solid mortgage, finding a lender that can accept 100% is crucial, as this will help you to ensure that your full income is being taken into account for the affordability check.
Another issue can be zero-hour contracts. Many people who work in the hospitality industry can be faced with issues such as this, along with long-term temps who work 12-months or more.
If you worry that you are not going to be able to get a mortgage for this reason, or if you receive a shift allowance for the overtime rates that you have worked for weekends or nights, then getting this income taken into account is crucial if you want to get a good offer.
Using a specialist mortgage broker who understands the hospitality sector is recommended and our Director Richard has been involved in the hospitality industry for many years. He has also worked as a chef and front of house, so he fully understands the challenges you may face.