Self Employed UK Mortgages
Self Employed UK Mortgages - The Path To Buying Your Dream Home
A record number of lenders now offer self employed uk mortgages, tailor-made to the more entrepreneurial UK resident. One new problem arising from the development in self employed uk mortgages however, is that there are a vast range of products, each with its own criteria and variables. This where a mortgage broker, that deals in self employed uk mortgages every day, such as The Mortgage Broker Limited, can point you in the right direction.
Why would I need to look at self employed uk mortgages?
Self employed uk mortgages are not only aimed at borrowers who work for themselves. It might be that, as a UK resident, you have irregular earnings. Perhaps you are an estate agent or recruitment consultant that earns a chunk of your salary through commission, or you could be a city worker who takes home a lot of your pay in annual bonuses. You may also have 'lumpy' income from an extra job you carry out from time to time. Self employed uk mortgages would be relevant and even necessary in any of these cases.
Where self employed uk mortgages may not be necessary is if you are self-employed and have three years' or more certified accounts. In this case, rather than looking at self employed uk mortgages, you could be better off checking out mainstream mortgage deals first.
How are self employed uk mortgages different to standard mortgages? This brings us to the question of how self employed uk mortgages differ from mainstream deals? Well, as a borrower who falls into this category will find it hard to arrive at a precise salary for borrowing purposes, so lenders offering self uk employed mortgages only require an estimation of earnings. Although this figure will not be verified by the lender, it will still have to meet the specific criteria for the product you are applying for within its self employed uk mortgages range.
What are the lending criteria for self employed uk mortgages?
Self employed uk mortgages are deemed to be slightly higher risk by lenders, which can result in borrowers having to put down a larger deposit of around 20 per cent of the property value. A higher interest rate is sometimes also attached to self employed uk mortgages.
However, as self employed uk mortgages become more popular, reflecting increasingly flexible working patterns in the UK, criteria has become gradually relaxed. In fact, in many cases self employed uk mortgages now resemble standard mortgages in terms of the interest rates payable and the deposit required, which in some cases can be as low as five per cent.
Bear in mind however, that the same principal that applies to standard deals also applies to self employed uk mortgages - that is that the greater chunk of deposit you contribute, the wider the range of lenders will be available to you and the better rate of interest you will pay.
Self employed uk mortgages sound right to me - so how can I apply?
Due to their more individual criteria, self employed uk mortgages, need more thought than standard deals, which is why a mortgage broker who specialises in the field, such as The Mortgage Broker Limited, can prove invaluable in choosing the right deal for you.
