All about Self-Employed Mortgagethehomemortgage
If you are a self-employed person and are planning to purchase a property for which you require a mortgage, then you are said to be in need of a self-employed mortgage. It is a misconception in the mortgage market that it is not very easy to get a self-employed mortgage. Earlier, there used to exist a self-certification mortgage, which was for the self-employed mortgage purpose, but now it does it exist. The reason for its non-existence is the faulty usage of it by the lenders and borrowers. But its discontinuance has not in any way reduced the chances of availing self-employed mortgages.
The options available in self-employed mortgages are no less than that available in any other category. You only have to prove that you have a regular and sustainable income through which, you will be able to payback your mortgage. For that purpose, you have to produce your recent past two year’s tax returns and the company accounts. However, if you do not have the past two year’s necessary records, and you are a contractor worker, then you have to prove that you have regularly been receiving contracts regularly. Moreover, if you have an existing mortgage for which you want to opt re mortgage, then it is much easier for you since your lender has your track record.
There are many lenders who design customized products for the self-employed mortgages. But you need not only opt from those lenders, as other lenders too offer the normal mortgages as self-employed mortgages. There are also chances that you may get lower rates than the existing rates, since many lenders prefer self-employed mortgages in lending, as the lenders think self-employed mortgages are more reliable.
There are a few things which the self-employed mortgage borrowers should ensure, while they opt for a mortgage, as there may be certain traps in which he/she could fall in. For example, you may continuously try to bring down your taxable income so as to pay lesser tax, and while you apply for the self-employed mortgage, the lower tax may act against in your favor. Other reasons may be earning through PAYE system which makes the business income seem lower.
For all the above mentioned details about self-employed mortgage, you may feel necessary to have some guidance for you so as to get the right mortgage for you. We are here to provide you the right knowledge so that you get what you desire and make the best out of it.