Self Employed Mortgages

What you need to know about self employed mortgages

Although mortgage lenders have traditionally required proof of income to secure a mortgage, these days you can obtain a self employed mortgage where no proof is required.

If you are self employed or working on a contract basis or just have a generally irregular or variable income because of your particular profession, then you could be eligible for a self cert or self employed mortgage.

If you are self employed you will need to work out how much you can afford to borrow and repay against your earnings - knowing that sometimes this is not regular. Having some audited accounts will help and allow you more freedom when applying for a self employed mortgage although this is not vital.

Being self employed does not mean that you are unable to get a mortgage - as it previously did.

If you want to apply for a self employed mortgage, then presenting your finances in a tidy way will help you. Get your bank statements together and any proof of payments to your pension or past mortgage repayments.

It is important to make sure that when you present yourself for a self employed mortgage, you do so carefully. Remember that all of the planning is in the preparation. If you are turned down, then next lender that you approach will see that you have been turned down and therefore may do so automatically.

It is always a good idea to find out why you were turned down for a self employed mortgage and then rectifying the situation before proceeding onto the next lender. If you are been turned down repeatedly, then this will go on your file to credit references agencies and therefore could work against you when looking for future loans.