For creatives on an unpredictable income, securing a mortgage is no mean feat
For those talented few in the entertainment industry—whose income can be as unpredictable as their next casting call—traditional lending criteria often create barriers.
“There are some lenders who have taken more of a bespoke view of it, there’s also some lenders who haven't done anything different. However, they've allowed us access to their underwriters," Austyn Johnson (pictured), founder of Mortgages for Actors, told Mortgage Introducer.
He explained that an actor’s irregular income structure can make conventional income documentation processes ineffective – which is where lenders like Saffron Building Society stand out. They offer a “good contractor proposition," Johnson added, allowing more flexible underwriting, which is particularly valuable for freelancers whose earnings fluctuate seasonally or peak during engagements, such as in holiday pantomime performances or seasonal productions.
The flexibility with some lenders extends beyond geographical borders in the UK. While Johnson observes that London, Manchester, and Leeds represent major demand centres for specialised mortgage services in the creative industry, he underscores that these lending criteria are not region-specific.
"It doesn’t matter where they are," he said, explaining that lenders evaluate the applicant's profile rather than location, a critical factor for actors or creatives who may need to buy property far from their work bases.
Johnson also notes the rise of international clients, particularly from the US, buying property in the UK.
"We get people in buying properties in Dubai…wherever there’s a sort of tourist area," or where the client intends to maintain a secondary home. This ability to serve a diverse clientele aligns with Johnson’s objective to broaden mortgage accessibility to non-traditional earners.
Reflecting on the future of mortgage products for self-employed and freelance clients, Johnson anticipates that lenders leveraging manual underwriting will be at an advantage.
“Lenders that can do manual underwriting with real people, rather than AI, are going to come out on top with all of that sort of thing," he claimed. This preference arises from a belief that AI may fail to capture the nuances of a freelancer's income and adaptability—factors that Johnson believes make self-employed clients particularly resilient, as seen during COVID-19.
"Self-employed people are more secure in their roles…many adapted, they did tutoring online and stuff like that," Johnson added, suggesting that this adaptability merits consideration by lenders.
High-net-worth clients
Johnson’s experience with high-net-worth clients, including influencers, YouTubers, and other high-profile freelancers, highlights another layer of complexity. For these clients, unique risks and financial planning needs arise due to the "unpredictable nature" of their professions. He observes that certain types of mortgage protections are difficult to obtain: “If they are boxers, YouTubers, things like that, it’s a lot harder to get protection for them, because…well, they could decide to go into a boxing match…and they’re not insured against that.” However, he always advises income protection for all self-employed clients, as they "don’t have a fallback" if their income suddenly stops.
This need for tailored advice extends beyond actors to all creatives, including production staff, musicians, dancers, models, and other content creators, whose income streams can be equally irregular. However, as Johnson told Mortgage Introducer, many freelancers who were able to weather the pandemic have emerged with a more secure financial footing than anticipated.
"The ones that had their finger on the pulse…they came in really well and started earning again at the same level, if not a higher level." This resilience, however, is not universal. Johnson adds that segments of the creative industry, particularly freelancers affected by recent writer and actor strikes, continue to face financial strain. For some, these obstacles have forced shifts in careers, reinforcing the need for adaptable mortgage solutions.
Ater all, mortgage advisement for creatives requires more than standard lending criteria and calls for engagement with lenders who prioritise person-centred underwriting.
"That’s how we place a lot of our businesses, by just talking to people and making sure they understand everything first," Johnson said.
