Having a number of diverse income streams can be a great way to minimise your financial vulnerability and boost your bank balance. Whether you have passive income from a rental property coming in alongside your salary or you do self-employed work to help boost your monthly income, having money coming in from a number of different sources can be great. As @GenYMoneyMan says:
“When you’ve managed to acquire multiple streams of income, your “job security” isn’t tied to a single source. If the economy changes the revenue of one stream, you can rely on the others for a while.”
However, when it comes to getting a mortgage, having a number of income streams can make things complicated. An important part of the mortgage application process involves proving how much you earn, so if you get some money here and some there, this can be tricky. If you have more than one income stream and are thinking about applying for a mortgage, organisation is key. Keep reading to find out more.
Getting to grips with your finances
Although you may have a rough idea of how much monthly income you receive from each revenue stream, it’s a good idea to take a closer look at your finances before making your mortgage application. If you’ve been receiving income from these varied sources for a number of years, they’ll probably show up in your tax return. This will help you to prove your income when it comes to applying for a mortgage.
Types of income
Money can be earned in a variety of different ways. A lot of people earn money both as an employee and as a self-employed worker. Rental properties can also bring in a lot of money every month, while some people choose to earn their money by trying their luck on the stock market. In most cases, you’ll be able to use all stable income streams when applying for your mortgage. For some house buyers, this can make a big difference, especially if they’re trying to push themselves to afford the house of their dreams.
Get expert advice
Taking on a mortgage is a major financial responsibility. Getting expert advice before you commit to a loan will help to ensure that the mortgage is right for you and that you have the best product for your needs. This is especially important if your income isn’t straightforward as they’ll be able to point you towards the mortgage that suits you perfectly, and help you get your finances in order ready for the application process.
If you’d like to speak to an expert financial advisor about your mortgage needs, or if you want to find out more about the services we offer, take a look around our site – or get in touch today.
Please be aware that by clicking on to the above links you are leaving the Perception Finance Limited website. Please note that Perception Finance Limited are not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Written by: Editorial Team