Securing the best self employed mortgages
Self employment can be beneficial in many ways. It allows you to set your own work times, find something that works for your own skill set and being your own boss can often make work more fulfilling. However, the uncertainty around self employment (as well as the inevitable highs and lows of payment) can make applying for mortgages more complicated. Here are some times to help you find the best self employed mortgages to suit your personal circumstances.
Getting a mortgage
The first part of getting a self employed mortgage is checking how a lender defines if you’re self employed- usually this will be defined if you own 20 to 25 per cent of a business that is your main income or if you are classed as a sole trader, company director or contractor.
While people who are self employed should have access to the same deals as people who work in an office or other forms of employment, the reality is that if you run your own business then you will often be asked to provide more evidence of your earnings in order to secure a mortgage (such as two or more years’ of certified accounts, details of upcoming contracts for contractors or any dividend payments or profits you have retained as a company director).
If you have the right evidence then you should be able to get a mortgage deal. However, it may be better to get a specialist self-employment mortgage as this will be more likely to be tailored to your personal financial circumstances.
Shop around
In much the same way as you would compare offers for car insurance or a phone contract, it is worth comparing what is available in terms of the self-employment mortgages that are out there. Remember, it is important to check the costs involved both in terms of how much you will have to pay upfront and the interest rates that you will need to pay over the course of the mortgage agreement (something that can be done using a mortgage calculator.)
We’re here to help
At Hove Mortage Services, we are aware that for anyone the process of securing a mortgage can be stressful. In the case of self employed people, this can be additionally stressful as you are asked to produce more evidence and may have to answer questions on your savings, spending etc while a lender considers whether or not they will agree to a deal with you.
Our belief is that there should be no hassle when it comes to getting a mortgage. Whether you are looking at a one bedroom apartment or a penthouse suite, we can find a mortgage that has been attuned to your individual needs. We work with highly rated lenders so will be able to match you with someone sympathetic to the needs of their self employed clients. For more information please contact us today and we will be happy to go over the options available to you in more detail.
