Self Employed Mortgages
Even in these days of credit crunch, getting a suitable mortgage if you’re self employed is not the trial that it used to be. Traditionally, banks and other lenders wished to see regular income guaranteed by employment.Whilst there are still specialists who deal in products for
self employed mortgages
people, it’s probably true that most lenders will deal with self employed people. Your best bet to find this out is to seek out an independent mortgage adviser.
Just a little piece of advice here, and to paraphrase George Orwell, some independent mortgage advisers are more independent than others. Be prepared to shop around for your mortgage adviser too, a little preparatory digging is always beneficial.
As I have alluded to above lenders are nervous by nature and don’t easily get a handle on the ins and outs of different businesses. However, this is slowly changing, so do your homework and shop around. Better still get your mortgage adviser to do this – he or she will have access to a wide range of lenders and products. It was the case that if you were self employed and wanted a mortgage, the lender would seek proof of your income.
That is, you’d need to show three years properly audited accounts or if you’ve not been in business for long enough the lender would accept a letter of confirmation from an accountant.If you’re not able to show the three years accounts, you will probably be faced with having to pay a larger deposit, or apply for a self certification mortgage. These provide a solution for people who cannot guarantee or otherwise suitably demonstrate their full income. Sometimes these mortgages are associated with the self employed, self certification mortgages are available to people from all walks of life, no matter what their employment status.
The key is in the name, a self-certification mortgage is nothing more than a ‘normal’ mortgage save for the fact that you’ve no need to demonstrate your income. However, you do need to make a signed declaration of your income and that you are able to afford the mortgage that you have applied for.In pursuing this route however, you must remember the standard mortgage warning, YOUR HOME MAY BE REPOSSESSED IF YOU CANNOT KEEP UP REPAYMENTS ON ANY LOANS SECURED AGAINST IT. We’ve all heard it before, but it’s not there for the benefit of the lender – they can, and they do, make repossessions.
Self employed people can sometimes have a hard time getting approved for a mortgage. We deal with people everyday who tell us that. Today’s lenders have seen that the self employed person in Canada is becoming a more common thing. There are many mortgage solutions out there if you are in this position.
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