If you are self employed, a contractor, or have irregular income, you're probably one of many people in the UK who know they can afford a mortgage, but will likely encounter difficulty getting a standard mortgage. The nature of the UK workforce has changed significantly over the past decade with many more people working for themselves, yet many mainstream lenders have failed to update their approach towards self employed borrowers. Many still lack the innovative ideas that are needed to help the diverse working population, with most lenders working from generic, time based credit score mechanisms.
The good news is there are some lenders who adopt a 'common sense' approach who have opened up their doors to allow self employed and contractor borrowers to get up or on to the housing ladder.
Even if you have just one year's trading history, have bad credit history or are a contractor who works on rolling contracts without payslips, we can offer appropriate guidance and help you get a mortgage.
To get free initial no obligation advice from a mortgage broker who specialises in assisting self employed borrowers, simply complete our enquiry form.
The self employed and freelancers may be regarded as pariahs by some lenders, but some banks and building societies have built up more experience dealing with borrowers who work for themselves and are more willing to lend to such individuals on standard terms.
As a self employed borrower your choice of lender is limited compared with other types of borrower, but there are certain lenders more sympathetic if your case stacks up. These lenders examine each person’s financial background in order to assess their true affordability. Some lenders may be prepared to accept just one year of accounts and take a projection from this. Many of the larger lenders adopt a 'computer says no' mentality, whereby if you fall marginally outside the required eligibility criteria, you're likely to get turned down, but smaller banks and building societies tend to take a more "human" approach. Knowing which lenders to approach is where a good broker can come into their own. Our job is to get all the information we can about you as a self employed borrower and your financial situation, and build a case as to why the lender should lend to you.
At the start of the century, there was a proliferation of mortgage products which were developed to meet the needs of a wide range of borrowers, some of whom may have formerly been excluded from the mortgage market altogether because they could not fulfil conventional criteria for verifying their income.
Self certification - or self cert - mortgages allowed borrowers to declare their own income, rather than providing documentary proof for the lender. There was no requirement to produce payslips or audited accounts to prove income. These types of loans were helpful to people in a variety of circumstances, but unfortunately the products were abused and encouraged many to exaggerate their income.
Changing lifestyles helped drive the growth of self certification mortgages. The number of people who are self employed has grown and, among those who are employed, working patterns have become more flexible, with more people on short-term contracts or earning incomes that vary significantly from one period to another.
Even though specialist self cert products have now disappeared from the market altogether that doesn't mean you are excluded from getting a mortgage. As a self employed borrower suitable alternatives may be available which are designed to meet your needs.
Simply complete our no obligation enquiry form to see whether we can help you. You'll get free initial advice from a broker who has access to whole of market.
You'll receive advice on the most suitable deals for you. Quotations are FREE, so it costs you nothing to see what your options are.