Even in these days of credit crunch, getting a mortgage if you are self employed is not the trial that it used to be. Traditionally, banks and other lenders wished to see regular income guaranteed by employment. Whilst there are still specialist lenders who offer mortgage products for the self employed, it's probably true that most lenders will deal with self employed people. Your best bet to find this out is to seek out an independent mortgage adviser. Just a little piece of advice here, and to paraphrase George Orwell, some independent mortgage advisers are more independent than others. But shop around for your mortgage adviser too, a little preparatory investigation always pays.
As I have hinted, lenders are cautious creatures especially in this day and age and don't always appreciate the whys and wherefores of different types of business. But slowly this is changing, so do your homework and shop around, or get your mortgage adviser to do this. It used to be the case that if you're self employed and you needed a mortgage, the lender would need proof of your income, you would have to show three years audited books or if you've not been in business for long enough they would accept a letter of confirmation from your accountant.
If you're not able to show the three years accounts, you will probably be faced with having to pay a larger deposit, or possibly go down the route of a self certification mortgage. These provide a solution for people who cannot guarantee or otherwise suitably demonstrate their full income. Although often associated with the self employed, self certification mortgages are available to people from all walks of life, regardless of their employment status. The key is in the name, a self-certification mortgage is the same as a 'normal' mortgage except that you don't have to demonstrate your income. What is required instead is a signed declaration of your income and that you are able to afford the mortgage that you have applied for. In following this route however, you must remember the standard mortgage warning, YOUR HOME MAY BE REPOSSESSED IF YOU CANNOT KEEP UP REPAYMENTS ON ANY LOANS SECURED AGAINST IT. We've all heard it before, but it's not there for the benefit of the lender - they can, and they do, make repossessions.
Self Employed and need a mortgage? Read more about
self employed mortgages. There's more at my blog at
cosmicjellybaby.com. Input from my readers is always desirable.
