Mortgages for the Self Employed
Mortgages For The Self Employed | Avoid The Pitfalls
There are a lot of advantages to being self employed. You get to work for yourself, when you want, where you want. There are also some disadvantages, but not being able to get onto the property ladder isn't one of them anymore. That's because some banks, building societies and mortgage lenders now offer mortgages for the self employed. These are the same as conventional mortgage products, but they allow borrowers to self certify their income. This means that lenders offering mortgages for the self employed may not ask customers to prove their income. So how do you know if you are eligible for such a mortgage?
More and more people in the UK are now self-certifiable and no doubt countless others will become so in the future. For those that want to buy their own home, mortgages for the self employed could be an option. Mortgages for the self employed can be used to finance home purchase by people that can't prove their income, not just business owners. For example, people that take home large bonuses or commissions that count as part of their income. And many people in the UK now derive income from investments, which mean their incomes can fluctuate.
Other examples of people who may be eligible for mortgages for the self employed include seasonal workers or those contracted to multiple employers. Temp or agency staff, whose income varies and cannot be predicted, may also need to self-certify their income - in which case mortgages for the self employed could be right up their street. In addition, some people have second or even third jobs, which again means they earn more than the salary from their main job. And some people, such as nurses, manufacturers and journalists, are able to boost their main income through shift work.
These types of people, and indeed anyone who can't prove their income, could find mortgages for the self employed could be the answer to getting on the property ladder. Being unable to prove your income may no longer mean buying a home is just a pipedream. Once upon a time their financial situation and fluctuating income may have meant being rejected for a loan. But now, lenders that offer mortgages for the self employed realise that such borrowers may still be perfectly able to meet their mortgage repayments.
Of course, in a recession, mortgages for the self employed will not be found easily. It will take a great credit score, a good wage and most importantly a great mortgage adviser. But it's not impossible - just because there is a credit crunch doesn't mean no one wants to lend. According to the Office of National Statistics (2008) there are nearly 5 million people in this country who could be eligible for self certification deals, so the banks and building societies know there is money to be made, they are just more cautious about how they lend. So there is hope in the gloom and there are mortgages for the self employed out there.
