Self Employed UK Mortgages
Self Employed UK Mortgages - Your Questions Answered
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?
Well, as a borrower who falls into this category you will find it hard to arrive at a precise salary for borrowing purposes, so lenders offering these deals will require an estimation of earnings. Although this figure will not be verified by the lender, it will still have to meet the strict, 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?
These deals are deemed to be slightly higher risk by lenders, which can result in borrowers having to put down a larger deposit of around 25 per cent of the property value. A higher interest rate is sometimes also attached to self employed uk mortgages also, especially during this credit crunch. Also, to get one of these deals you need a great credit score, proving that in the past you have dealt with debt well.
Bear in mind also, 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 can prove invaluable in choosing the right deal for you.
