There are over four million self-employed individuals in the United Kingdom, and if those whose work styles differ from the mainstream are included, that number is even higher. Some of these individuals may include those who are self-employed, receive commission as part of their income, or are contract workers.
These individuals have unique needs when it comes to mortgages and mortgage brokers – they may require specialised services when it comes to purchasing a mortgage or remortgage.
Are Self Cert Mortgages Still Available?
Lenders in the United Kingdom have traditionally shown hesitation when dealing with individuals who are self-employed. Until recently, there have only been a handful of specialist lenders willing to provide these individuals with broker services in the form of self-certification mortgages.
Although these types of products are no longer in existence, there are alternative offerings that are suited and beneficial for the self-employed borrowers.
A traditional self cert mortgage did not require applicants to provide any documentation as to their income, such as account balances, pay slips, or P60s. Rather, self-employed borrowers would simply make a declaration as to what they believed would be made and what their average income was.
Modern lenders handle self-employed borrower’s applications on a case by case basis, making sure to get a full understanding of their risk profile and ability to repay the mortgage amount borrowed.
How Has the Economic Market Affected the Self Cert Mortgages?
The economic crisis and recent credit crisis have caused lenders to be less likely to extend mortgages and other products to self-employed borrowers. Another result of this economic market change resulted in the removal of self cert mortgages from the market altogether.
These types of mortgages have gained a bad reputation triggered by the idea of “easy borrowing” and the housing price boom. This combination caused some borrowers to claim higher incomes then they were actually making in an attempt to borrow larger amounts of money and bigger mortgages.
Despite this bad publicity for the self-employed, modern lenders understand that many individuals who are representative of good lending are overlooked by the regular market – they are stable in their work and able to repay mortgage amounts but may have unique circumstances that make it difficult to get a mortgage going the traditional route.
With today’s challenging mortgage market, seeking the advice of a specialist or advisor may be beneficial.
How the Self-Employed Can Find the Best Mortgage Deals….
Some lenders will only work with authorised intermediaries when doing business with those who are self-employed – this is because lenders hold a firm belief that advice from financial professionals is the best way to help individuals choose the mortgage plan that best fits their needs.
Additionally, using the services of a professional broker specialising in these types or mortgages can help grant individuals access to exclusive deals including fixed rate and discounted products. This kind of assistance is also available regardless of the applicant’s credit and an experienced professional will research different options and source the best deals and rates on the market.
Free No obligation quotation – we search the whole of the UK self cert mortgage market for you and your financial circumstances. We will search over 400 UK mortgage lenders for you, and because we are totally independent we can get the the best deal.
Thinking Of Purchasing A New Home?
Looking for a new property or want to remortgage with bad credit? If you think that you may be in the ideal position to take advantage of a specialised mortgage then speak to one of our advisers who will be able to help you find the different mortgage options you have available to you.
Self Cert Mortgage and Remortgages Advice
Our friendly FCA-Qualified advisers will help you get the right product for your circumstances.
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