Best mortgages for the self employed, contractors and other people who don't fall within the normal lending criteria of most lenders
The self employed are often penalised for their status, either charged higher rates or rejected entirely as lenders regard them as higher risk than their full time, employed counterparts.
Fortunately, there are a few specialist mortgage lenders that realise there is a growing number of self-employed people, many of whom make ideal borrowers, who have different needs to those who can rely on a regular income.
Contact us today and unlock the door to specialist self employed mortgage lenders.We have an indepth understanding of the difficulties the self employed encounter when trying to get a mortgage. Our expertise in this field allows us to offer solutions to help you get the home you want. We have access to specialist lenders who provide mortgages to those borrowers who fall outside of mainstream lending criteria. They operate in niche markets, have underwriters assessing cases individually and understand that a one-size-fits-all lending policy doesn't suit many borrowers.
See which lenders offer the best self employed mortgage deals
The benefits of using a broker
If you are self-employed or have complex income streams (such as commission-based income or you received large bonuses) this can make it harder to find the right lender and as a result independent advice from a broker can be extremely valuable. The main advantage of using a broker is that you could potentially save yourself time and money. A specialist self employed mortgage advisor will know exactly those lenders that will accept you as a self-employed borrower and those that won't. In addition, a broker is likely to have access to exclusive products not available on the high street as many of the specialist lenders only do business through intermediaries.
All the shopping around will be done for you to ensure you get the best deal possible. The market will be scrutinised thoroughly, from high street lenders to smaller specialist lenders. We'll know which lenders to approach based on varying factors including your trading period, allowance of retained profits, using the latest year's accounting information only, HMRC tax calculations in addition to statutory accounts and so on.
Simply complete the online enquiry form for a FREE no obligation quote.
Self cert no longer an option
Following the withdrawal of self certification mortgages from the market, the choice for the self employed borrower has diminished somewhat. The principle of a self certification (or self cert) mortgage was if you worked for yourself, you couldn't rely on a regular salary, payslips or a P60 to prove your income - so you didn't. You declared what you earned and the lender would lend you a sum accordingly, without you having to provide proof of income such as audited accounts.
However, the credit crunch brought an abrupt end to these rather controversial products and they have now been axed altogether. In some quarters they were dubbed "liar loans" as there was widespread evidence to suggest they were being abused by borrowers who were overstating their income in order to secure finance. Although these products no longer exist, there are a number of lenders who offer alternative deals to the self employed, as well as those with complex income.
Expert advice can be crucial
During the boom years of the housing markets, a decade or so ago, it was much easier for everyone including the self employed and contract workers to get a mortgage. This all changed following the financial meltdown in 2007 which triggered a sea change in approach. Mainstream high street banks became, some might say, blinkered in their approach towards mortgage lending, cherry picking those borrowers they deem the lowest risk or simply the easiest to deal with.
During 2016 things have improved with more and more self-employed people turning to mortgage advisers to place their cases with specialist lenders. This is because the availability of mortgages for the self-employed is increasing thanks to specialist lenders and at the same time, the number of self-employed people in the UK is on the rise. In fact there are now 4.6 million self-employed people in the UK - that's 15% of the working population, the highest proportion for more than forty years. Getting the right advice can be crucial. There are some lenders who accept less than 2 years accounts, so even if you only have one year of accounts there are products and lenders available.
Whether you have good or bad credit history, have a preference for a fixed rate mortgage or perhaps a more flexible offset, let an expert broker analyse your situation, advise you on your options and suggest the self employed lenders who may be willing to help you.
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