Self Employed Mortgage

It is a mortgages that will accept applications from the self employed. Traditionally it's been more difficult for the self employed to get mortgages. Mortgage lenders preferred to see the regular income guaranteed by employment. However this has changed in recent years. While there are mortgage lenders who specialize in the self employed, most lenders will now be much more likely to deal with the self employed. If you've been involved in a particular industry for years this will be an advantage. Lenders are interested in seeing how employable you are.

If you're new to your area of business this may prove a problem till you can demonstrate regular income. If you're on a "short term contract" it will help if you can show you have a regular contract with the same "employer" ie which has been renewed. The longer it's lasted the better. Others may want to see a pattern of renewals over a one or even a two-year period.

Advantages: Standard mortgage lenders have certain criteria that must be met if you are self-employed and looking for a mortgage. They may, for example, want to see an average of three years' certified business accounts from you before you will qualify for a standard mortgage product. But, many lenders are becoming more flexible and, if you are a current homeowner and have a good repayment history, then they may well approve your application. Even so, many self-employed people find the best advantages in a specialist deal. So, for example, if you opt for self-certification you will be allowed to simply state your income without proof in most cases. You will be credit checked but can avoid the certified accounts problems that many self employed individuals come across especially if they have not been in business that long. This can make the whole process a whole lot easier and stress free.