Mortgage For Self Employed
Mortgage For Self Employed - Are The Disadvantages Too Much?
A mortgage for self employed people does exactly what it says on the tin. If you are self employed or work in a field that means you can't prove your income, these house purchase loans allow you to borrow money to get on the property ladder. If you've been turned down for a traditional mortgage and are ready to give up on the dream of home ownership then before you do, take a moment to consider the benefits of a mortgage for self employed people.
Setting up your own business is increasingly popular as people quit their nine to five jobs in order to work for themselves. While many people enjoy the benefits of being self employed, there can also be some disadvantages - such as not being able to prove your income. And that's where a mortgage for self employed people can help. Mortgage lenders have quickly cottoned on to the fact that not all borrowers can produce payslips. So, if you can't prove your income but can afford to meet monthly mortgage repayments, then you could consider taking out a mortgage for self employed workers.
When you apply for a mortgage, whether through a mortgage broker or direct to the lender, your ability to repay the loan will be assessed. In the old days, lenders looked at how much borrowers earned to decide how much to lend. But these days, lenders that offer a mortgage for self employed people instead look at your overall ability to repay the loan. So, when you apply for a mortgage for self employed people, you don't have to hand over payslips, P60s, bank statements or audited accounts. You simply state how much you earn and sign a declaration which the lender will then accept on trust. Of course, like any mortgage, a mortgage for self employed people attracts interest and you must meet all your repayments or face losing your home.
So, who can benefit from a mortgage for self employed people? Well, like the name suggests, these products are suitable for people who are self employed. You could own your own business, work on a freelance basis or do contract work. Everyone from the owner of a sweet shop, a taxi driver or a freelance writer might be eligible for a mortgage for self employed people.
But they're not just for the Self Employed...
But the self employed are not the only workers in the UK that can't prove their income. A mortgage for self employed people might also be of benefit to a number of different professions.You might have more than one income streams, perhaps from a second job, or perhaps you are a seasonal worker. Other people that take out a mortgage for self employed people in order to buy a house include workers that earn commission or bonuses.
If you have been turned down for a traditional mortgage because you can't prove your income then it may be tempting to assume you're locked out of the property market. But the benefits of a mortgage for self employed people is that even if you don't fit bill for a traditional mortgage you can still borrow money at a competitive rate of interest and realise that dream of owning your own home.
