It might not seem it during these hard economic times, but self employed people are special – and as such they need to make sure they have special insurance.

The problem is self-employed workers who do not work in their residential home importance of purchasing dedicated self employed insurance but many people who work in home offices do not realise that the cover applies to them as well – it doesn't matter where you are self employed, all self employed people need to get special cover.

Cornhill Direct warns that people working in home offices could find themselves out of pocket if they do not take out the right insurance – for example home-based workers may need to take out 'public liability insurance' if they ever invite customers or business contacts into their home on official business. Or they may need to take out specific income protection should they lose their stream of earnings for a short period. If something did happen then a self employed person without the right insurance may find themselves a huge bill, which could put their self employed mortgage at risk.

Mark Bishop of Cornhill says: "Home workers do need to consider the insurance implications because equipment used for commercial purposes may not be adequately covered or covered at all by a standard home insurance policy, particularly if removed from the home."

If you thought that your regular off-the-shelf insurance would be good enough to cover you if you work from home, you could be catastrophically mistaken. Talk to a self employed finance specialist about taking out the right protection that will make sure that your venture is covered.

SOURCE: Cornhill Direct, 21/04/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

Not many of us like our jobs and for some that's enough to consider living the dream and doing what they love as their own boss – something that could be achieved with the right finance options.

A new survey from Streamline.net has found that 56% of business bosses say they would consider starting a new business related to their passions like traveling or their favourite sports and pastimes – they know that doing what you love would not only make your life better but it could offer you a profitable line of income.

Tough times make people look for happiness – 53% of business bosses say that the recession has made them re-think their work and life balance. For many that means looking at why they are working and what they can do to work less – part of that might be reducing outgoings, something that can be achieved with the help of a good financial adviser.

Steve Holford, marketing director of Streamline.net says: "Britain’s small business owners have weathered challenging times, however, the data suggests that the entrepreneurial spirit is very much alive. More owners are keen to start out in a totally new direction and creating a hobby-based business is a common ambition."

If you want to follow your passions, talk to a financial adviser about taking out a new mortgage to make your finances work with your desires. If you have the right idea, have the passion and have a good financial plan behind it, anything is possible.

SOURCE: Streamline.net, 19/04/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

If you are suffering from tough financial times thanks to late payments hampering your business it might be worth checking your mortgage to see if you can do something to improve your cash flow.

New research from NatWest has found that 71% of small businesses in the UK have suffered from late payments over the last 12 months, with the collective value of invoices paid outside of the stipulated terms and conditions estimated at £62.8bn.

It is tough for many people who are trying to hold their businesses together – it is certainly not helped by people not coming through with their side of the arrangement. And it's happening up and down the country with one in five small businesses having suffered.

Despite these problems, the research reveals that less than half of small businesses have taken measures to improve their cash flow, according to the bank. This is worrying because all business that are having a tough time should be constantly assessing how they can shrink their outgoings.

Peter Ibbetson, chairman of small business at NatWest says: "Bad debts and late payment of invoices are endemic problems for UK businesses. For more than one in ten firms, over 60% of all their invoices are paid late, causing major cash flow problems for many. What's concerning is that so few are doing anything to help alleviate the problem."

The best thing any small business can do is to assess all their finances and see where savings can be made. It might be that a new cheaper small business commercial mortgage could take significant pressures off your enterprise – and all it would take to find out is to ask a professional mortgage adviser.

SOURCE: NatWest, 15/04/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

Plenty of business owners are still seeing very little if no improvement to their enterprises – if yours is not picking up maybe a commercial loan could be the answer to kick-start your venture.

By injecting finance into your business you might find that you can reduce your overheads, shrink your debts and help build your business' profits.

Unfortunately small business owners are not feeling confident – 62% believe the economy will get worse again before it fully recovers and over a quarter think there are already signs that this is happening, according to new research from uSwitchforbusiness.com.

It has found that 63% of small businesses are finding trading conditions tough – 5% more than at the end of 2009 – and 71% have seen little or no improvement in the trading environment compared with a year ago. As a result, almost half say that it will take their business more than a year to get back to normal again after the recession, compared to just 26% in Q4 2009.

Jake Ridge, small business expert at uSwitchforbusiness.com, says: "The greenshoots of recovery are yet to reach Britain's small and as a result many are finding trading even tougher now than before. They've been through a white knuckle ride and most are not expecting a smooth landing.

"And that's when the real work starts in trying to rebuild their business and boosting sales and turnover – 44% of small businesses anticipate that this process of getting back onto an even keel will take them over a year."

One way to make sure your business can take off again is to make sure your finances are in order. That means assessing your debts and looking to see if you could get hold of better commercial mortgage finance. To prepare for an eventual upswing, talk to a mortgage adviser about your financial responsibilities right away.

SOURCE: uSwitchbusiness.com, 10/04/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

If your business is booming you might think that it's time to take advantage of your good fortune and look to buy a new home – but you'll need some expert advice.

According to PricewaterhouseCooper, two thirds businesses are confident about their ability to expand over the next 12 months compared to a year ago. More small businesses are making the most of the sensible plans they made a year ago and have now carved out a niche that's making them a healthy profit.

David Snell, partner at PWC, says: "Businesses appear to have more faith in their ability to manage their own companies."

But how can you turn that confidence into a bigger home for yourself and your family? Talk to a specialised mortgage adviser. They can help you find finance that reflects your business success and your business potential. If you are making money why not spend it – but only do so after expert advice.

A specialised mortgage adviser can find you loans created by specialist mortgage lenders that are designed for small business owners. They will be flexible, they will reflect your increased income and they will be affordable enough so as to not affect your business. Have big dreams, stay confident but do not put your business at risk with the wrong home loan.

SOURCE: PwC, 07/04/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

New research has found that small business enterprises are chasing as much as £1.9bn in late payments thanks to the economic downturn – you need to get the right protection to be sure that any late payments do not put your self cert loan at risk.

New research by Bibby Financial Services shows that 35% of businesses are finding customers are taking longer to pay invoices than 12 months ago, which has meant that £1.9bn is still owed to UK business. Twenty per cent of companies say they are chasing invoices three times or more, and a staggering 48,000 businesses have had to follow up invoices more than 11 times.

Anyone small business owner with a self cert loan knows how important it is for their finances to run smoothly. Missed payments mean its the business owner who ultimately has to make up any loses, which could affect their ability to pay on their other financial responsibilities each month, like their self cert mortgage.

Edward Rimmer, chief executive of Bibby Financial Services says: "Across this nation, businesses are fighting for survival with sustaining a healthy cash flow one of the biggest challenges. We must do everything possible not to succumb to the easy route of late payment as it can become a vicious circle."

Those small businesses with the right income protection insurance need to worry about late payments. If they lead to financial difficulties for the owner then the important things like the mortgage are covered regardless. No one wants to deal with late payments, but with the right insurance they needn't be as serious as they might be.

SOURCE: Bibby, 31/03/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

The latest Budget by the Chancellor of the Exchequer was criticised by many – but it did promise a lot for small business mortgage borrowers.

In the last Budget before the general election, Chancellor Alistair Darling said: "There are still companies who are being unfairly denied credit. To help them we will set up a new service to fast track complaints, which will enforce judgements if credit is found to have been unfairly denied."

This is a big issue for many people who are self employed and run their own business. They have been trying and trying to get hold of credit but to no avail. And no credit means more debts, a less successful business and the risk of default and even insolvency.

But Darling seemed keen to do more to make sure that small business borrowers can get hold of finance. He even announced that state-aided banks RBS and Lloyds will be forced to lend £94bn to businesses over the next year, nearly half of which will go to small businesses.

The British Bankers Association says: "The banks stand ready to lend to small businesses with a sound business plan which might benefit from the package of support announced by the Chancellor."

While some businesses might be dubious that these measures actually turn out to mean more small business mortgage credit, no one can doubt that the best chance to get some credit is through a professional small business mortgage adviser. They will be able to talk to lenders and actually broker a deal for you that works for your business. So if there is more mortgage credit available in the coming weeks and months, it'll be small business mortgage adviser who'll have the key to accessing it.

SOURCE: HM Treasury, BBA, 24/03/10s

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

The self-employed could be placing themselves at risk by putting business before their long-term financial planning, according to a new study.

Long-term financial planning is key to any business – knowing that what you are doing is going towards positively managing your assets and debts for years to come will help any self-employed person sleep better at night.

One of those long-term goals is to make sure you will be safe when it comes to your retirement – that means setting up a pension, organising the pension pots you might have and coming up with a plan to maximise savings and minimise debt over the long term.

But that's not happening right now – according to Standard Life, self-employed 35 to 44 year olds have pension pots less than a third of the size of their employed counterparts – the average pension savings of a self-employed 35 to 44 year old are £24,500, with half having pension savings of less than £3,500. 

Andrew Tully, senior pensions policy manager at Standard Life says: "The UK has a long-term savings gap which is magnified when you compare the self-employed and employed. While it is entirely understandable for the self-employed to focus on making their business a success, they also need to be aware of the implications of their employment status when planning their long-term finances. 

"The recession has also created a whole new group of self-employed entrepreneurs who need to reality check their personal finance plans and focus on keeping them on track as much as their business plans."

Talk to a financial professional about moving your finances in the right direction. It might not take too much time and shouldn't cost a fortune, but it will help you save a fortune in the long run.

SOURCE: Standard Life, 21/03/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

UK small business borrowers are facing £7bn of losses after the worst winter in decades – and those who did not have the right insurance will surely be counting the costs.

Research by Lloyds TSB shows that seven in ten small and medium sixed firms have been affected by the freezing conditions that have wreaked havoc across many parts of Britain. It says four in ten have been directly affected with their premises being closed or cut off. For many small businesses they had no option but to shut up shop and almost a fifth of small businesses had to halt business for at least five days – a full working week without any trade.

This all had a direct financial impact on the bottom line for nearly six in ten small firms. More than a third claim to have taken a hit of up to £10,000. One in eight estimates the cost to have been somewhere between £10,000 and £30,000. And, one in twelve believes the cost could be more than £30,000 – four per cent believe that the cost to their business could be more than £50,000.

Stephen Pegge, head of external affairs for Lloyds TSB Commercial says: "Business have faced a double blow over the past few months. They have had to grapple with the downturn in trade as a result of the recession, as well as the impact of the severe weather conditions. The combined impact of both the recession and winter will inevitably have caused cashflow problems for many businesses."

The only way to limit the financial problems that come with bad weather is to take out the right insurance. By talking to a financial professional and spending a few extra pounds a month on the right protection you can be sure that whatever the weather does, your income and your business is safe.

SOURCE: Lloyds TSB, 16/03/10

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog

You might be sure that you can afford to pay for a mortgage each month, and you may be currently handling a smaller loan comfortably – but how much could you really afford?

For some that is a stupid question. They have a monthly income, they have savings and they have debts. This can all be measured and a rough estimate of what they could afford to pay on a mortgage each month could be deduced.

But for others it is not such a straightforward question. Some people earn large amounts for some parts of the year, very little for others. Some people can earn more money if they choose to do more hours, some people are reliant on the markets, on the mood of customers or even on the weather. Some people only earn their money at Christmas, some people earn huge bonuses at unpredictable times of the year and some people have to hope that their new product sells to earn money.

For these people it is difficult or even impossible to say how much they could afford to pay each month. So how do they get hold of a mortgage? A lender is unlikely to give someone a six-figure loan if they cannot honestly say that they will have enough money to pay for it each month.

For those people, professional mortgage advice is key. A professional self certification mortgage adviser is able to assess finances, incomes, outgoings and look at the whole UK mortgage market to come to a decision about what mortgage suits that person best. They are also able to discuss that loan with the lender and come to an agreement for a mortgage.

So if you can't answer the question, talk to a professional mortgage adviser as they will be able to answer that question for you.

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog