Can You Get a Mortgage If You’re Paid in Cash?

For many workers, receiving part of their salary in cash is a common practice. Whether you’re in hospitality, construction, or self-employed, cash payments are perfectly legal. However, when it comes to securing a mortgage, cash income can present challenges. Lenders require a clear, traceable record of earnings, and cash payments can complicate this process. So, what can you do if part of your income is paid in cash? Let’s explore the options.

Why Do Lenders Have Concerns About Cash Income?

Mortgage lenders assess applicants based on their ability to afford repayments. To do this, they rely on bank statements, payslips, and tax records. If a significant portion of your income isn’t documented through official channels, lenders may see it as unreliable. This can lead to difficulties in securing a mortgage or being offered less favourable terms.

Lenders are also required to comply with anti-money laundering (AML) regulations. Large, unexplained cash deposits can raise red flags, even when they come from legitimate earnings. The key is proving that your income is consistent, legal, and sustainable.

How to Prove Your Income for a Mortgage

If you receive cash payments, here are steps you can take to improve your mortgage chances:

• Bank Your Cash Regularly – Instead of keeping cash earnings off the books, deposit them into your bank account regularly. This creates a paper trail and demonstrates consistent income.
  
• Declare All Earnings – If you’re self-employed or work in a job where cash tips are common, make sure your full income is declared on your tax returns. Lenders often use your SA302 tax calculation to assess affordability.
  
• Keep Accurate Records – Maintain invoices, payslips, or any other documentation showing your income sources. This adds credibility when applying for a mortgage.
• Work with a Specialist Mortgage Broker – A broker who understands complex income situations can help match you with lenders more open to applicants with cash income. At Mortgage321, we have access to lenders who assess affordability more flexibly.

Which Mortgage Options Are Available?

Not all lenders will reject an applicant with cash income, but some may have stricter criteria. Specialist lenders and certain high-street banks may consider your application if you can provide strong evidence of earnings.

Options may include:

• Specialist Mortgages – Some lenders cater specifically to applicants with non-traditional income sources.
  
• Self-Employed or Contractor Mortgages – If you file tax returns declaring all income, including cash payments, lenders may assess affordability based on your declared earnings.
  
• Adverse Credit or Flexible Lending – Some lenders take a broader view of income, particularly if you have a strong financial profile otherwise.

  

Get Expert Advice

If you’re paid in cash and are concerned about getting a mortgage, don’t assume it’s impossible. Mortgage321 specialises in finding solutions for complex income situations. With our expertise, we can match you with lenders who understand your circumstances.

Get in touch today to discuss your mortgage options and let us help you secure the best deal.