Self employed mortgage
Whether you have always been self employed, or you have recently moved into self employment, one thing you will probably know is that when it comes to getting a mortgage deal, your employment status can make it a more difficult process than if you were in permanent employment.
Despite the fact that self employed workers can earn as much and often more than the average earner in the UK, banks still don’t treat self employed mortgage applicants like they particularly want their custom. With strict criteria that must be met and various types of terms and conditions, requests for evidence, etc. they really do make you feel like they don’t want your business. Given that banks are supposed to be trying to enhance their customer base and build relationships, this approach to contractors seem to contradict that business model.
Not only do they ask you to provide what can seem like endless documentation and accounts evidence, they also like to apply additional interest rates and less favourable deals. Even if you have accounts that show that you have earned a solid, steady income over a period of years, their inflexibility prevails.
With statistics showing that there were 4.6 million people in the UK registered as self employed, there is a huge population of people that come into the category and inevitably most of them will require a mortgage. Due to the lack of flexibility shown by regular banks, there are alternative ways to attain a mortgage if you are self employed, through specialist self employed mortgage providers.
It used to be easier for self employed workers to apply for mortgages as they could self certify your income, rather than providing your accounts history. However, self cert mortgages were banned in 2011 in the UK as there were concerns that people were abusing the method to loan more than they could afford to pay back. This left self employed, contractors and freelancers with a huge problem when it comes to applying for a mortgage.
Fortunately, there are still a number of companies who are able to help self employed workers get onto the property ladder or buy new properties. Specialist self employed mortgage providers ensure that you have an alternative solution to the regular banks who try to impose unfair charges and conditions on self employed workers. Don’t let them take you for a ride just because you are self employed, they should be grateful for your business.