At Charther CT we come across many self employed contractors and freelancers who feel cold shouldered by traditional mortgage lenders. Over 50% of people who are self employed feel that they may never be able to even get a mortgage!
Before the recent credit crunch, potential borrowers had the option of a self-cert mortgage, where there was little requirement for proof of earnings. This was a boon for the self employed whose income tended to fluctuate.
Unfortunately for the self employed, self-cert mortgages are no longer on offer, making it increasingly difficult for the self employed to get a mortgage. It is not a lost cause, and with due diligence, people who are self employed can greatly help themselves to obtaining a mortgage.
Steps to a self employed mortgage
- Keep an eye on your credit rating and try to avoid any arrears, non-payments, ccj’s etc.
- Minimise any superfluous personal costs, mortgage lenders will look at all your expenses.
- Make sure you have a qualified accountant to sign off your accounts.
- Try to have at least 3 years of receipts and accounts for you and your business.
- Keep/get receipts from HMRC in regard to your accounts/earnings.
For further information on mortgages Council of Mortgage Lenders