Your Tameside interviewed local mortgage advisor Craig Coyne from Compare The Mortgage regarding some of the misconceptions about the mortgage market for the self employed and the perception that it is now very difficult for self-employed people to borrow in order to buy a home.
Craig pointed out: " while it’s certainly true that one type of mortgage used by the self employed in the past is no longer available, their chances of being able to borrow are still just as good as anyone else’s"
"the product in question, self-certification mortgages, have been outlawed because lenders and borrowers alike were abusing them. The loans, which enabled people to borrow without having to prove their income, were originally aimed at a tiny minority of self-employed people with special circumstances, but ended up being sold much more widely."
"there are many options currently available and self-employed borrowers have access to exactly the same range of mortgage products as everyone else as long as you are able to prove you have the income necessary to make the repayments on the loan for which you are applying."
"Proof of income involves you having at least two years’ worth of company accounts, SA302s or tax returns – to show to lenders (though a few may request three years’ worth). If you are self employed as a Contractor you may also have to provide evidence of work you have already lined up for the future, in order to show that your current levels of income can be maintained."
" I have found that even if you are self employed and don’t have two years’ worth of records, you may still be able to get a mortgage. Self-employed workers who have a regular track record of contract work may be able to use this to their advantage. Also, if you already have a home loan, but wish to remortgage , to move home or simply to get a better deal – your existing lender may be more sympathetic, especially if you have a good history of making repayments on time."
"If you are self employed and looking for a mortgage there are a handful of specialist lenders who offer products designed specifically with the self-employed in mind.You should have full access to the choice between fixed and variable rate mortgages including tracker mortgages, so there’s no reason to worry about this, some lenders feel more comfortable about self-employed borrowers than others."
If you need any help and advice from Craig regarding a mortgage please feel free to contact him:
Telephone: 0161 8504922 Mobile: 07900 462312