If you are self
employed then you will find that getting a mortgage is
not always as straight forward as it should be. This is
because although it has gotten better recently, mortgage
lenders do tend to prefer to lend to somebody who has a
regular income.
People who are self employed usually find that their
income is up and down and so they do not always have the
same amount of money each month. This obviously is not
proof that you can pay your mortgage on time every month
which is what makes many lenders a little wary.
What Makes Getting a Self Employed Mortgage Easier?
There are ways which
will make getting a mortgage when you are self employed
easier. These include:
How long you have worked for yourself
Doing your research
Being employed by an employer if you do short term
contract work
All of the above will help when looking out for self
employed mortgages. How long you have worked for
yourself is one of the main things that the lender will
look at. This is because if you have been working for
yourself for a long period of time, then it shows that
you are doing well in what you do. By doing well it is
assumed that you can pay your mortgage and you are then
likely to be accepted. If on the other hand you have
only been working for yourself for a few months, it is
unlikely that you will be able to get a mortgage.
Another thing which
you may find useful is to do your research and shop
around. All mortgage companies are different and whilst
you may be unaccepted by one company, you may be
accepted by another. There are actually mortgage lenders
who specify in self employed mortgages so typically they
would be the best to look at first. Also different
mortgage lenders have different insurance rates so that
is something else you should compare. Try and research
at least five mortgage lenders to see what the best
deals are.
Finally, if you are only working on short contracts
which add up to part time work instead of full time, it
may be wise to be employed by a company too. A mortgage
lender will look favorably upon you if you do this and
it will be easier for you to get a mortgage.
Self
Employed Mortgages for Limited Companies
