What Are Mortgages For The Self Employed?
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What Are Mortgages For The Self Employed?
It seems strange to have an entire range of mortgage for just one section of the UK's work force - but mortgages for the self employed are a special branch of lending that cannot be ignored. But what are they exactly? How do they differ from other mortgages? And are they only for those who are self employed, or are they open to more people? Mortgages for the self employed explained - because you could be surprised to learn what you could gain from one, if you are eligible.
Mortgages for the self employed, also known as non status mortgages or self cert mortgages, are a huge part of the UK loans market and are available to many Brits looking for a home finance. According to national statistics, there are more than 10 million people in the UK who are considered 'non status' borrowers*. This means they cannot prove their income, which in turn means it is difficult to get a mortgage from many lenders. Maybe they are self employed, run their own business or work on a contract basis. Maybe they have more than one job, or are freelancing. They may even work in a job that pays on the basis of commission, performance or bonuses - all of these people are eligible for self cert mortgages or mortgages for the self employed.
Usually a mortgage lender will calculate how much they are willing to lend on the basis of a borrower's income. Whatever their yearly income, the lender will multiply it by two, three, four or even in some cases five times to come to a number they are willing to lend. But not with mortgages for the self employed - if the person is a non status borrower, that is impossible. You cannot calculate potential or maybes that way, so lenders of mortgages for the self employed have created a method of affordability calculations based on past earnings and credit ratings.
The lenders of mortgages for the self employed take your credit rating and feed it into their calculators, which then see if you could handle a loan. The better the credit rating and the more a borrower has dealt with debt in the past, the better the mortgage potential. So that means borrowers trying for mortgages for the self employed have the potential for bigger and better deals without earning any more money.
And mortgages for the self employed can be catered to anyone's needs. They are found in the same forms as any other mortgage deals - fixed rates, trackers, buy-to-let mortgages for the self employed, commercial mortgages, even offset mortgages for the self employed are a possibility. Just because you cannot prove your income does not mean you cannot afford any mortgage you want. Self cert lenders have understood this and so have created hundreds of innovative mortgages for the self employed for people just like you.
* Office of National Statistics
Mortgages for the self employed, also known as non status mortgages or self cert mortgages, are a huge part of the UK loans market and are available to many Brits looking for a home finance. According to national statistics, there are more than 10 million people in the UK who are considered 'non status' borrowers*. This means they cannot prove their income, which in turn means it is difficult to get a mortgage from many lenders. Maybe they are self employed, run their own business or work on a contract basis. Maybe they have more than one job, or are freelancing. They may even work in a job that pays on the basis of commission, performance or bonuses - all of these people are eligible for self cert mortgages or mortgages for the self employed.
Usually a mortgage lender will calculate how much they are willing to lend on the basis of a borrower's income. Whatever their yearly income, the lender will multiply it by two, three, four or even in some cases five times to come to a number they are willing to lend. But not with mortgages for the self employed - if the person is a non status borrower, that is impossible. You cannot calculate potential or maybes that way, so lenders of mortgages for the self employed have created a method of affordability calculations based on past earnings and credit ratings.
The lenders of mortgages for the self employed take your credit rating and feed it into their calculators, which then see if you could handle a loan. The better the credit rating and the more a borrower has dealt with debt in the past, the better the mortgage potential. So that means borrowers trying for mortgages for the self employed have the potential for bigger and better deals without earning any more money.
And mortgages for the self employed can be catered to anyone's needs. They are found in the same forms as any other mortgage deals - fixed rates, trackers, buy-to-let mortgages for the self employed, commercial mortgages, even offset mortgages for the self employed are a possibility. Just because you cannot prove your income does not mean you cannot afford any mortgage you want. Self cert lenders have understood this and so have created hundreds of innovative mortgages for the self employed for people just like you.
* Office of National Statistics
Related Links
- Mortgages - In All Shapes And Sizes
- There is probably quite a bit you didn't know about mortgages. They are one of the UKs most important products, over 17 million Brits have one, but what types of mortgages are out there?
- Self Cert Mortgages
- The best self cert mortgage for you will depend on your circumstances - you may be employed, self employed, have a bad credit history or just cant prove your income.
- Top Five Fast Track Questions Answered
- Because non status borrowers looking to be approved for self certificate mortgages cannot prove their income, their applications can be 'fast tracked' - entered into a computer for an instant decision in principle.
- Non Status Mortgages & The Credit Crunch | What's True Or False?
- If you are someone who cannot prove their income and are shopping for non status mortgages you need to know the facts, not the horror stories. So read on to get the low-down on the credit crunch and how it has really affected non status mortgages in the UK.
- No Proof Of Income Mortgage - Which Deal Is The Right Deal?
- To get the best no proof of income mortgage, you have to be sensible and realistic no matter how bad your situation. So make sure you know if you need consolidation, or if you need an adverse no proof of income mortgage - to solve any financial difficulties you need to face them head on.
- Self Cert Mortgage - Tips For Lender Approval
- To be sure of getting approved for a self cert mortgage you need to know what the lender is looking for and what will convince not only them, but their high-tech affordability calculators, to lend you a self cert mortgage.
- Self Cert Mortgages - A Good Choice For Bad Credit?
- If you have bad credit, you want to clean up your record and move on financially - but it is imperative that you make the right choices. One of those choices could be self cert mortgages.
- Self Cert Remortgage - For All Shapes And Sizes
- In the past you may have looked into getting a self cert remortgage and found inflexible, unaffordable deals that jut would not work with your needs. Well, it might be time to take another look.
- Self Certification Mortgage - Answers You Want To Hear
- The only way to guarantee peace of mind, and to be fully ready for a self certification mortgage is knowledge. So here are a few of the most popular questions regarding self cert deals answered.
- Buy-To-Let Self Certification Mortgages - Key To Renting Success
- With self certification mortgages you can afford the flexibility and freedom not found with many other buy-to-let deals, meaning your business is a guaranteed success.
- Self Certified Mortgages | Get Online For Great Deals
- Specialised mortgages like self certified mortgages are available online - through the internet you can find yourself the one mortgage amongst thousands that is right for you.
- Can A Broker Help Me Find The Best Self Employed Mortgages?
- If you are self employed you probably know how important it is to do business with professionals - the mortgage professionals who can find you the best self employed mortgages are definitely mortgage brokers.
- Self Employed Mortgage Tips For First-Time Buyers
- Here are a few tips to make sure, if you are looking to get your first mortgage and cannot prove your income, you are eligible for a self employed mortgage.
- Self Employed Remortgages - Beat The Crunch
- Don't be put off by the crunch - if you are coming to the end of your self cert mortgage term, there are some simple things to do to make sure that you beat the hype and find self employed remortgages with the minimum of stress.
- Non Status Mortgage - Top Five Facts
- The most important facet of a non status mortgage is that you do not need to be able to prove your income to be accepted for the deal.
- Will I Pay More For A Non Status Remortgage?
- Things have changed and a non status remortgage will cost more as house prices continue to fall. So how much more will you pay for a non status remortgage with all this talk of a credit crunch and world credit recessions?
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by Mortgage-Information
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