Anyone who has ever been self employed will know that trying to get a mortgage can be a really difficult process. With strict criteria and banks that won’t even take you into consideration, you can feel like you have no options left. Some self employed workers have ended up renting property for long periods of time because they were so frustrated with the long-drawn out, complex process of applying for a mortgage.
Renting can obviously be dead-money, making profit for landlords and increasing the length of time before you eventually get onto the property ladder. Then you’re probably set for further misery because you’ll find that house prices have gone up and you need to raise a huge amount for a deposit.
If you’re familiar with this situation then you’ll probably be interested to know that there are many specialist mortgage providers currently available to take a more understanding approach to the problems faced by self-employed workers.
You have probably found that high street banks will either decline your application immediately, keep you waiting for months (before probably declining) or providing such poor customer service that it makes you not want to go through them. If you’re tired of going through this and you’re keen to get on the property ladder and settle into a home, then you will almost certainly be better off with a specialist self-employed mortgage provider.
A specialist company will understand how your accounts system works and be able to understand your true income, realising that self employed workers have tax efficient ways of working with their accounts.
It used to be a lot easier for self-employed people to get a mortgage as they could apply for a self-certification mortgage, where they declared their income without the need of the evidence that is required these days. Unfortunately, this system was abused by many people trying to get higher mortgages than they could afford, and these types of mortgages were subsequently banned.
Whilst the government had no other choice than to stop people from getting into debt in this way, there still aren’t any alternative options to help self-employed workers to easily get a mortgage. That is why it has been vital for this large population of people (15% of the working population) in the UK that there are specialist mortgage providers that will assist them and get them onto the property ladder.