Hospitality Industry Mortgages
Working in the hospitality industry can be a fulfilling and exciting career, but it can also come with its own set of challenges when it comes to securing a mortgage. One of the biggest obstacles that those in the hospitality industry face is the lack of consistent income and the prevalence of zero hour contracts.
Here are a few tips for anyone in the hospitality industry looking to secure a mortgage:
Plan ahead
If you know you’re going to be looking for a mortgage in the future, start planning early. This will give you time to build up a solid credit score and save for a deposit.
Be honest
Be honest with your lender: Lenders will want to see proof of income, so make sure you’re upfront about your employment situation, including any zero hour contracts you may have. Be prepared to provide additional documentation such as bank statements and payslips.
Consider a co-signer
If you’re having trouble getting approved for a mortgage on your own, consider enlisting the help of a co-signer. This can be a family member or a friend with a good credit score and steady income.
Keep your expectations realistic
Don’t expect to get approved for a mortgage with the same terms and conditions as someone with a traditional 9-5 job. It may take some extra extra effort, but with the right planning and preparation, it’s still possible to secure a mortgage.
Challenges for Hospitality Mortgages
The hospitality industry has suffered exceptionally testing times in the wake of the COVID-19 pandemic. Businesses were forced to quickly adapt to fast-changing guidelines or close their doors, with no certainty of when they could be opened once again.
All this happening whilst contending with a dramatic drop in profits caused by significantly less footfall and soaring costs.
Not out of the woods yet
Now with inflation reaching 13-year highs, and the Bank of England warning of ‘apocalyptic’ rises to food prices, it’s unsurprising why so many businesses are still feeling the pinch.
After all, customers now have far less money to spend on luxuries and with price hikes across the board, eating out is certainly becoming a luxury for most.
Staff and employers of the hospitality industry alike will surely be feeling the strain in these uncertain times.
Whilst Prospect Tree Mortgages are unable to lend a hand with these dilemmas specifically, we can help those who own businesses or are employed within the hospitality industry to find the mortgage which suits them best and find some security in the knowledge that they have chosen the product which saves them the most amount of money possible.
Hospitality Industry Mortgages
The best mortgage for you will largely depend on what you do within the Hospitality industry. If you are a business owner, then you could have more options available than someone who is employed in the industry.
If you are an employee in the hospitality industry, then you will have certain nuances to your pay structure which will affect how lenders calculate your maximum mortgage size.
Prospect Tree Mortgages are here to help you get the best advice for your mortgage as either a business owner or employee in the hospitality industry.
How we can help
Prospect Tree Mortgages are independent mortgage brokers based in the UK. This means we can access all the mortgage products available in the UK mortgage marketplace and help you find the mortgage which suits you best.
How to get in touch?
Check out what our Professional Sport clients had to say about our service HERE
0800 8620 840