Almost two-thirds of prospective first-time buyers are using additional sources of income to help fund a property purchase, according to research from Mojo Mortgages.

The survey found that 64% are supplementing their main income through activities including freelance work, delivery driving, online tutoring and selling secondhand goods through platforms such as Vinted and eBay.

For many, the additional earnings appear to be making a significant difference to the time needed to build a deposit. Some 53% of respondents said a side hustle had shortened their saving period by two to three years, while 72% said it had reduced the process by between two and five years.

The trend is particularly pronounced among younger prospective homeowners, with 72% of those aged 18 to 24 running a side hustle specifically to build a property deposit or longer-term savings.

TAX POSITION COULD AFFECT MORTGAGE PLANS

The growing reliance on secondary earnings also raises tax and mortgage affordability considerations for first-time buyers who want lenders to take the income into account.

Those who received more than £1,000 in gross income from self-employment or trading during the 2025/26 tax year may need to register for Self Assessment with HMRC. The registration deadline for the tax year ended 5 April 2026 is 5 October.

The £1,000 trading allowance can mean individuals with gross trading income at or below that level do not need to tell HMRC, although circumstances can vary.

For borrowers hoping to use side-hustle earnings to support a mortgage application, maintaining appropriate tax records can also be important. Lenders assessing self-employed or additional income may require evidence such as tax calculations and Tax Year Overviews before including those earnings in affordability assessments.

That means additional income which helps a first-time buyer accumulate a deposit will not necessarily increase their mortgage borrowing capacity unless it meets the lender’s criteria and can be evidenced appropriately.

Mojo Mortgages’ findings suggest secondary income is becoming an increasingly important part of the route to homeownership, particularly for younger buyers facing the combined challenge of raising a deposit and demonstrating sufficient affordability.