Self Employed Mortgages
by admin on 08/03/09 at 6:56 am
Before self certified mortgages were introduced, getting fund for home on a mortgage was very difficult for self employed people, freelancers, company directors and people on bonuses. The main problem involve with self employed people is, they shows their income less than they are actually earning for tax reasons. Since a bank generally lends 3.5 times of the borrowers earnings, self employed people, freelancers, company directors and people working on bonuses get a much lower loan than they can really afford.
After self certified mortgages or self cert mortgages got introduced, self employed people can obtain loan just by providing the amount they are earning per year in the application form. You don’t have to provide any kind of documents to prove your income, the lender will trust whatever amount you mentioned to be correct.
Since self employed mortgages have higher risk at the lenders end, most companies will allot a loan of 15% to 85% only to the property value. However, the mortgage market is very much competitive and more and more companies are popping up with lucrative offers. So if you shop well, you will be able to get an appropriate deal that will meet your requirements best.
