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What Type of Income Do I Need To Get a Mortgage

A word of caution

Although this article focuses on what banks think of different income types, keep in mind, no matter the income type, you’ll need to have the amount of income that shows you can afford the mortgage you’re applying for to get an approval. 

Now let’s get into it. 


PAYE income from permanent employment is the type of income that banks love to give lending to. They see it as the most reliable. In their minds, even if you lose your job you can most likely get another one and not have much disruption to your mortgage repayment schedule. 

If you’ve got a permanent PAYE job, you can feel secure that the type of income you have is just what the bank is looking for.


Banks are careful to lend to people who have self-employment income, but they will if you can show a track record of the income you need to afford the mortgage you’re applying for.   

They will look closely at the last 2 years of financial records to see that your taxable income meets their criteria. For this reason, you might need to ask your accountant to decrease your business expenses, if you’ve been trying to maximize your tax savings, so your taxable income increases. 

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