Are you hoping to buy a property and use your income from a side hustle to support your mortgage application? Unfortunately, not all lenders will factor this into their affordability calculations – here’s what you need to know…

With the current cost of living crisis and food bills still high, it’s perhaps no surprise that over 44% of Brits have a side hustle to top up their earnings. According to the website,, some 49% of men and 40% of women have a side hustle that generates additional income. The average income from side hustles is £206 per week.

According to recent research from Ipswich Building Society, 64% of first-time buyers claim they have a second source of income to help them save for a deposit. This figure is even higher in London, with 85% of Londoners generating additional revenue.

Will the extra funds count?

If you have a side hustle, you may hope the extra funds can be factored into a lender’s affordability calculations when applying for a mortgage.

However, there’s no guarantee that a lender will be prepared to include the income you earn from a side hustle when calculating how. much they are prepared to lend. ‘Lenders need to be satisfied that all income is sustainable, so when it comes to additional income, it must be plausible that this can continue for the remainder of the full mortgage term,’ says MB Associates’ Sales Manager, Phil Leivesley.

‘Often, there is a requirement for the applicant to have been receiving additional income for a minimum period, which can vary from one lender to the next,’ adds Phil.

‘The underwriter might ask for confirmation of how many hours are needed to earn the extra income. If someone has to work 80 hours a week, this isn’t sustainable in the long term, so any additional income might not be accepted.’

Declaring additional income

Additional income must also be declared to the taxman to count towards your borrowing. If you want a lender to consider your additional income, you must provide evidence and show that it is being declared to HMRC. In short, it must be visible on your tax returns and also appear on your bank statements.

A lender may expect to see at least one year’s worth of trading history from a side hustle, and in most cases, you’d have to show at least two years’ worth of figures before you’d be able to use this income. Finally, remember that your income must be sustainable and achievable in the long term. In short, you must be able to prove that it will be income you will continue to receive.

We’re here to help if you have any questions about what you could borrow.

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