Self Employed Mortgage
Need a Self Employed Mortgage - High Street Refuse To Help?
Is a self employed mortgage right for you?
A self employed mortgage recognises that just because you may not meet the criteria for a mainstream loan, it does not mean that you cannot get a mortgage. There are now many mainstream lenders that will offer a self employed mortgage, many of them specialist.
Taking on a self employed mortgage is becoming increasingly popular, possibly because they are becoming more widely available in the market. Increased competition has meant that self employed mortgage interest rates are a lot better than just a few years ago. There has also been a change in people's working patterns, with more choosing to set up their own businesses, work on a contract or job-share basis or receive income from multiple sources.
What do I need to provide when I apply?
When you apply for a self employed mortgage, most lenders will ask you to provide between one and three year's proof of your income. This is sometimes difficult if you are self employed because your income may be irregular and you may not be able to produce enough evidence through your P60's or payslips.
If you have set up in business recently you may not have enough audited accounts to provide proof of income to get a self employed mortgage. Often if you are self employed you will be offered the chance to self certify.Self certification mortgages are becoming increasingly popular among those who are looking for self employed mortgage because they provide a way to get a loan even if you cannot prove your income. A self certification mortgage allows you to certify your own earnings to get a loan. However, the interest rate on a self certification mortgage might be higher than on a self employed mortgage or a mainstream mortgage.
But they're not just for the Self Employed...
A self employed mortgage is not just limited to the self employed. It could also be useful to someone whose income, for example, is made up on various sources, or to someone who receives income from various investments. While it has traditionally been difficult to get a self employed mortgage, today there are a multitude of lenders who will offer competitive deals.This is good news for you because if you take the time to shop around you may be able to find a good deal. How much you can borrow on your self employed mortgage will depend on how much you earn and how much the property is that you want to buy. The type of work you do and how long you have been in your job could also affect your ability to get a self employed mortgage or could influence how much the lender is willing to loan to you. For example, being in the same job for many years, or having proof of regular work may work to your advantage. Being self employed is no longer an excuse for not getting a mortgage. So if you have a good credit history, and a deposit, a self employed mortgage could be the perfect option for you.
When you look at your search results for self employed home mortgages you may want to look for a mortgage which is flexible, allowing you to make underpayments, overpayments or take payment holidays. We have given you some starting points for your search for self employed home mortgages and when you are more informed of the options you should find it much easier to find the mortgage that is right for you.
