Mortgages For Taxi Drivers

Getting a mortgage as a taxi driver can be more complex, particularly if your income fluctuates from week to week, you’re self-employed, you work for a platform like Uber, or operate in London, where living costs are high. Here, we’ll explain how taxi drivers can get a mortgage, what lenders look for in applications, and more.

Can taxi drivers get a mortgage?

Yes, but the process may come with unique challenges. Lenders often view taxi drivers as higher risk because income can vary with hours worked, license costs from the local council (or TFL in London), fuel costs, or seasonal demand.

For London taxi drivers, the costs of living and licensing requirements can add extra complexity. Uber or delivery drivers may be assessed differently depending on your income history or earnings structure.

Despite these challenges, mainstream and specialist lenders do offer mortgage products that accommodate the realities of taxi-driving income, provided you can demonstrate consistent earnings.

Mortgages for self-employed taxi drivers

If you’re self-employed - whether as a traditional black cab driver, minicab, or rideshare driver with Lyft, Bolt, or Uber - lenders typically look at your average income over the last 1 to 3 years.

Here are some important factors to be aware of if you want a mortgage as a self-employed taxi driver:

• Evidence of earnings: You may need tax returns (SA302s) and your business accounts to show your income from taxi driving over a period of time, usually at least 1 year.

• Profit after expenses: Lenders assess affordability based on your net profit after business expenses, which can reduce your borrowing potential if the costs of running your taxi driving operation are high.

• Consistency matters: Regular earnings over at least 12 months (ideally longer) will help lenders feel more confident about the sustainability of your income going forward.

Some lenders may also consider income from other sources, for example, you could combine taxi driving with part-time work or other freelance roles, to help strengthen your application and affordability.

Lending criteria for cab driver mortgages

Here’s what mortgage lenders will typically look for when assessing applications from taxi drivers:

• Employment type: Whether a taxi company employs you or you are a self-employed driver makes a big difference as to how lenders assess your income from driving.

• Income history: Most lenders require at least 12 months of self-employed income, although some may request 2 years of tax returns for a more comprehensive assessment.

• Credit history: A clean credit history is helpful, but having bad credit doesn’t rule out a mortgage. Late payments, defaults, or CCJs can make approvals more difficult, and specialist bad credit lenders are better to approach.

• Deposit size: Taxi drivers, like most applicants, are usually expected to provide at least a 5% to 10% deposit, resulting in a respective 95% LTV or 90% LTV. However, self-employed applicants sometimes need larger deposits.

• Vehicle costs and liabilities: Lenders may consider the cost of running your taxi business, including licensing fees, vehicle finance, and insurance, as part of your affordability calculations.

• Stability and trading type: Full-time drivers with a consistent client base or longer-term contracts may have a better chance of success than casual or part-time Uber drivers.

How to get a mortgage

Getting a mortgage as a taxi driver can be easier with some preparation and the right guidance:

1. Gather your documents: Along with basic documents such as your ID, proof of address, and recent bank statements, you may also need your most recent SA302s or tax returns, P60s, and evidence of previous contracts or rideshare earnings (if applicable).

2. Speak to a broker: With all your relevant information to hand, the next step is to speak with a broker who has experience arranging mortgages for taxi drivers. They’ll know the right lender to approach and the best way to structure your application and proof of earnings.

3. Apply to a lender: Once you have your personal documents, income proof, and deposit details, your broker will put your application together and submit it to the most relevant lender. This will ensure you get the best rates available and avoid any unnecessary rejections.

Speaking with a broker who specialises in self-employed taxi drivers or people working as professional drivers can maximise your borrowing potential and ensure you get the mortgage outcome you need.

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Available mortgage lenders for drivers

Some high street lenders and banks may offer mortgages for employed or self-employed taxi drivers. Here are a few examples of popular lenders that may consider these types of applicants:

• Halifax: Can be relatively flexible with taxi drivers, but the exact requirements will depend on the structure of your work and income. Some applicants may need 2 years’ evidence of a regular income, SA302s or tax year overviews for the past 3 years, or evidence of upcoming work if you have a contract.

• Barclays: For self-employed taxi drivers, Barclays will want to see proof of income for at least 2 years. For most applicants, the maximum income multiple used is based on your overall LTV. For example, with a 15% to 20% deposit, you can access a 5 times salary multiple, but less than this means a lower 4 times salary, limiting how much you can borrow.

• HSBC: Employed taxi drivers will need payslips and P60s, but self-employed drivers applying with HSBC will need at least 2 years’ tax calculations and tax year overviews or certified accounts from the last 2 years. As a large bank, HSBC tends to be cautious with varying income streams.

Are the rates higher?

Mortgage rates for taxi drivers aren’t automatically higher. Still, lenders may charge a slightly increased rate if your income is considered less predictable or if you have a shorter history as a professional driver.

Using a specialist broker can often help you access the most competitive rates or lenders with deals that aren’t advertised publicly. Providing clear evidence of consistent income, a solid deposit, and a strong credit record can pave the path to lower rates.

You can use our free comparison tool below to check out today’s latest rates from over 90+ lenders in the UK to get an idea about which lenders may offer the best mortgage rates for taxi drivers.

Why choose Money Helpdesk for your taxi driver mortgage?

Taxi driver income can be complex, and many high street lenders may not fully understand your earnings structure. That’s where a specialist broker can make all the difference.

At Money Helpdesk, our advisors have plenty of experience securing competitive mortgages for self-employed taxi drivers, Uber delivery drivers, London taxi drivers, as well as applicants with variable income.

Here are some more reasons why taxi drivers across the UK choose us to help them secure a mortgage:

• We specialise in taxi driver and self-employed mortgages

• Free initial chat with no obligation to proceed further

• Our brokers are 5-star rated on leading review sites

• Access to lenders comfortable with taxi or Uber income

If you’d like to compare today’s rates online for free, or speak with a broker with experience getting mortgages for taxi drivers, you can get started here.