How to get a mortgage as a social media influencer
In today’s digital age, social media influencing has become a legitimate and thriving career. Whether that is on social media platforms like Instagram, TikTok, X (formerly twitter), or YouTube. There is great money to be earned if you know how to crack the code. If you’re earning an income through collaborations with brands, advertising revenue, or other online ventures, you’re part of a new wave of professionals redefining traditional career paths. However, when it comes to securing a mortgage, the unconventional nature of your income can potentially present unique challenges. Many banks and building societies are more comfortable with conventional simple salaried incomes or black and white self-employed income. If you’re considering buying a home and you’re earning income as a social media influencer, here’s what you need to know.
Understanding Your Income As A Social Media Influencer
As a social media influencer, your income may come from a variety of sources, such as:
- Brand sponsorships
- Affiliate marketing
- Advertising revenue from platforms like YouTube or TikTok
- Merchandise sales or other entrepreneurial ventures
Regardless of the source, if you pay tax on your income, mortgage lenders will categorise you as self-employed. This classification comes with specific requirements that you’ll need to meet when applying for a mortgage. If you are employed by a social media company and receive a salary that is already taxed at source, then you will normally fall into the ‘employed income’ category when applying for a mortgage.
General Mortgage Rules For The Self-Employed Borrower
If you are a social media professional earning income directly from brands or other companies that you declare as self-employed income to the tax man, then you will be seen as self-employed when you go to get a mortgage. When applying for a mortgage as a self-employed individual, lenders typically focus on the consistency and reliability of your income. Below are the key factors they will consider:
Proof Of Income
Mortgage lenders require evidence of your income to assess your borrowing potential. For social media influencers, this often involves providing:
- At least two years of personal tax returns (SA302 forms from HMRC or your tax filings).
- Accounts prepared by a certified accountant.
- Bank statements to show consistent deposits from your income streams.
If your income fluctuates, lenders may take an average of your earnings over the past two or three years.
Sole Trader vs. Limited Company
How you structure your business impacts how your income is assessed:
- Sole Trader: If you operate as a sole trader, lenders will base their calculations on your declared net profit.
- Limited Company: If you run a limited company, lenders typically consider your salary and dividends. Some may also factor in retained profits, but this varies by lender.
It’s important to keep your accounts organised and up to date, regardless of your business structure.
How Long Do You Need To Be Self-Employed?
Most lenders require you to have been self-employed for at least two years. Some may accept one year of accounts, but this is less common and may limit your choice of lenders or result in less favourable terms. The longer you can demonstrate stable income, the better your chances of securing a mortgage.
Why You Might Be Rejected?
Even with steady income, social media influencers may face challenges due to:
- Fluctuating Earnings: Seasonal campaigns or inconsistent brand partnerships can make your income appear unpredictable.
- High Expenses: If your declared profits are low due to business expenses, it may impact how much you can borrow.
- Limited Proof of Income: If you haven’t been self-employed long enough or lack the necessary documentation, lenders may be hesitant to approve your application.
To mitigate these risks, ensure you maintain detailed records and seek advice from an experienced accountant.
Why Choose Oportfolio Mortgages?
At Oportfolio Mortgages, we understand that every client’s situation is unique—especially for those earning a living in non-traditional industries like social media influencing. Our team has extensive experience helping self-employed individuals navigate the mortgage process. We’ll assess your individual circumstances and recommend the best mortgage products for you.
Securing a mortgage as a social media influencer may require some extra preparation, but it’s certainly achievable with the right guidance. Contact us today to discuss your options and get started on your mortgage journey.
