Mortgage Tips & Advice

Mortgage Strategy published a thought-provoking article last month. Its premise suggests that self-employed borrowers get a raw deal with mortgage lenders.

Harsh, you might say. But I agree with the content…to a point.

The majority of self-employed workers do still struggle to prove their mortgage affordability.

The problem is often that they try to get approved at their local or a High Street branch.

But a generic advisor doesn’t understand (or can’t use) income listed as a net profit.

If the system’s broke, get a broker to fix it

So, what’s the answer? Do you forfeit the ability to buy your own home if you work for yourself? Continue reading about  Determining relevant self-employed income and lending criteria

Self-employed mortgages have become harder to secure since the credit crunch. That’s no surprise; advisors see most non-PAYE applicants as higher risk.

That said, since easing out of lockdown, lenders have redefined what classifies as risk. Mortgage lending criteria is changing daily for everyone, not just the self-employed.

There are still some self employed friendly lenders: lenders sympathetic to independents. But how do you know who the best self-employed mortgage lenders are? Continue reading about  Self-employed mortgage lenders

There are two ways you can apply for a mortgage when you have your first year of trading under your belt. A fast, savvy way or the slow and painful approach.

The fastest way for self-employed people is to speak to a specialist mortgage broker. Not just any broker, but one who knows what they’re doing. And that’s key, here. Continue reading about  You can get a self-employed mortgage with just one year’s accounts

Many contractors still find it hard to secure mortgages from High Street lenders. There are two classic reasons, both of which could be resolved with better education:

1. they approach familiar lenders, most of whom have no bespoke contractor mortgage policy;
2. branch/call centre staff at these institutions don’t understand how contractors and freelancers work.

On one hand, contractors need to understand that their income is non-standard. In branch, you’ll rarely find anyone who understands limited company income.

In both cases, the contractor needs an interpreter. That’s where specialist brokers come in. Continue reading about  Two fatal mortgage judgement calls almost all contractors make

We’ve all been there. Our decision to go self-employed seems to be justified. Business is booming. With it, the freedom we sought is within our grasp. But there’s still one niggle: rent!

Private rent can be the most frustrating aspect of contracting. Knowing that we’ve earned it by our own means, us contractors develop an uncommon affinity with our cash.

Continue reading about  Self employed mortgages are not beyond your reach