Introduction

With the rise of social media platforms, YouTubers and influencers have become modern-day celebrities with substantial incomes in this relatively new industry. As they grow in popularity, many content creators are looking to invest in property and explore mortgage options tailored to their unique financial situations. This blog post will provide an overview of mortgages for YouTubers and influencers, discussing the mortgage application process, key considerations, and tips to secure the best mortgage deals.

Income streams of creators

At R3 Mortgages, we understand that creators usually have various income streams which can include the following:-

Ad revenue or platform income

Creators can earn money from advertisements displayed on their content, such as YouTube's Partner Program, where creators earn a share of ad revenue generated by their videos.

Brand deals & Sponsored content

Brands often pay creators to promote their products or services through sponsored content, which could include social media posts, videos, or blog articles. Creators could arrange these brand deals themselves or these can be arranged through a specialist agency such as Exonia, one of the UK's leading Youtube creator marketing agencies.

Selling their own products also known as “Merch”

The influencer could sell merchandise also known as "merch" directly to consumers. This is another way influencers can monetise their brand and engage with their audience. Creating and selling custom products allows influencers to leverage their popularity and establish an additional income stream.

Courses

Influencers often create and sell courses to monetise their expertise and share their knowledge with their audience. These courses can cover a wide range of topics, depending on the influencer's niche and areas of expertise. For example, celebrity realtor Ryan Serhant offers a number of courses online to aspiring real estate agents. Productivity guru Ali Abdaal also offers a Part-Time YouTuber Academy where he teaches participants about how they grow their Youtube channel.

Paid subscriptions and memberships

Creators can offer exclusive content or perks to subscribers who pay a monthly fee, such as Patreon or YouTube Memberships.

Content Licensing

Creators can license their content for use in commercials, films, or other media projects, earning royalties or a one-time fee.

Public Appearances

Popular creators may be invited to speak at conferences, events, or workshops, where they can earn fees for their appearances and presentations.

Understanding the Mortgage Application Process for YouTubers and Influencers

Income verification

One of the challenges that YouTubers and influencers face when applying for a mortgage is proving a stable income. Lenders prefer borrowers with a steady and predictable income, which may not be the case for content creators whose earnings can fluctuate significantly. To overcome this hurdle, you may need to provide:

At least two years of tax returns demonstrating consistent income
Proof of income from various sources, such as brand deals, sponsorships, and merchandise sales
Bank statements and a profit and loss statement for your business

Different ways lenders assess self employed income streams

There are a few methods that lenders use to assess your income. This depends on if you are self employed as a sole trader or if you have a limited company.

Sole traders

With sole traders, lenders will usually look at your net profit as declared on your annual tax return.

Limited Company

For limited company directors, there are a few ways lenders can consider your income. These include:-

Salary and dividends: This would be the salary and the annual dividends received as reflected in your company accounts or your tax return.
Salary and net profit: The difference between this and the method above is that most influencers do not take all the available money from the company as they may not need it. However, they could if they needed to. Although this may limit the number of lenders available to you, it could dramatically increase the amount you are able to borrow.

Importance of Credit History

Maintaining a good credit score is crucial for securing a mortgage with favourable terms. YouTubers and influencers should monitor their credit file regularly to ensure it is accurate and up to date. Creators can potentially improve their credit score by :

Make timely payments on all credit accounts
Keep your credit utilisation low

If there are any inaccuracies, you can dispute them with the various credit reference agencies. If you would like access to a multi-agency credit file from Checkmyfile, click here.

Deposits

A larger deposit can improve your chances of getting approved for a mortgage and may result in better interest rates. The deposit could originate from your own funds alternatively you could be gifted the deposit by family members.

Mortgage Affordability

When assessing your borrowing potential, as well as assessing your income to ensure sustainability, lenders will also look at your financial commitments and outgoings. These include the following:-

Car leases and hire purchase arrangements
Unsecured loans
Credit cards

If you are looking to obtain a mortgage, it may be advisable to consider paying off high-interest debts and avoid taking on new debt before applying for a mortgage.

Before you consider making an offer, find out your borrowing capacity

Before you consider making an offer on a property, it may be advisable to obtain mortgage advice to find out your borrowing capacity. This can help you present yourself as a qualified purchaser and will also help you know what is achievable.

Conclusion

Navigating the mortgage process as a YouTuber or influencer can be challenging, but with the right preparation and research, you can secure a mortgage that fits your unique financial situation. By understanding the application process, considering specialized mortgage options, and working with a knowledgeable mortgage professional, you'll be well on your way to homeownership.

Frequently asked questions

Are there specialist mortgage brokers for influencer mortgages?

Youtube influencers could find it beneficial to obtain expert advice from a mortgage broker that understands the way influencers are paid and can assess income streams. This could open the door to many high street lenders rather than going to specialist lenders who could charge more.

Can I get a mortgage if I am an influencer?

Most lenders would view mortgage applications from Youtubers or Creators the same as they would if someone was self-employed.

I just receive Youtube income but have experienced exponential growth in my channel, especially in the last year. Will lenders take this into account?

Many social media influencers can find their channel has experienced exponential growth even if they are relatively new to the industry. An advantage of seeking mortgage advice is that your adviser can see the best way to present your case. Underwriters who are the people making the lending decisions want to see that you have income sustainability. This is to ensure you can afford the mortgage now and in the future. Therefore a mortgage adviser who understands the needs of clients who are Instagram influencers or those who get on just youtube income can be beneficial.

How many years of accounts would an influencer need to get a mortgage?

The greater the track record, the greater the information available to the lender about the business's trajectory. Ideally, you would have filed at least 2 sets of accounts but there are lenders that could consider as little as one year's accounts.

Would I need a specialist lender to get a mortgage as an Influencer?

Not necessarily. As most lenders would treat influencer/You tube income streams as self employed, it may be possible to arrange borrowing from high street lenders.

Do Mortgage Lenders Prefer Certain Type Of Influencers? (Social Media, YouTube or Reality Figure)

Lenders will consider each application on it's own merit. However, if the creator produces content that would cause the lender reputational risk, it may impact the number of lending options.

I only have 1 years accounts In the influencer industry, will my income accepted?

There are lenders that can consider one year's self employed accounts for mortgage purposes.

Can I use my income to get buy an investment property on a buy to let basis?

Yes, subject to meeting the lender's criteria. You will usually need a bigger deposit than when buying a residential property of at least 25% of the property value. With buy to let lending, as well as your own income, lenders also consider the rent that you can achieve by renting out the property.

Disclaimer

This post is for information purposes only and does not constitute advice. Readers are advised to seek professional advice to discuss their own position and requirements. R3 Mortgages does not accept liability for any errors or ommissions.

The Ultimate Guide to Mortgages for YouTubers and Influencers