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Mortgage Tips & Advice

Not all lenders treat self-employed workers equally. The tips and advice offered here will help mortgage advisors to see your true affordability.

Self-employed mortgage arrangement fees rise

arrow shooting upwardsNot renewed your self-employed mortgage in a while? You may be in for a shock—and not a pleasant one—when the time comes. Lenders’ mortgage arrangement fees have risen, but don’t take them at face value…

In 2009, the average lender arrangement/product fee was less than £1,200. In 2013, that risen to £1,500+, a rise of more than 25%. Come 2020, many fees hover around the £1,000 mark. So they’ve dropped, then? Is that right?

Yes. And no. Mortgage Arrangement, or Product fees are not all as clear-cut as a one-off payment. Variables determine the final fee that you need to know about.

Deposit and interest rate can fluctuate to make the ‘arrangement fee’ look attractive. MoneySaving Expert sums it up succinctly:

Beware low rates disguising high fees.

Cunning lenders often use high fees to make their interest rates look more attractive, so they rise up the best buy tables. Some charge fees of £2,000+. Expect to pay a fee of at least £1,000 to secure an attractive rate.

Why have arrangement fees risen so much so quickly?

Continue reading about  Self-employed mortgage arrangement fees rise

Self-employed income + High St criteria = mortgage rejection!

woman at desk with calculatorWe often relate the tangible shock self-employed people get when told they’re no longer creditworthy. Often, it’s their existing mortgage lender breaking the bad news.

Their stories, perhaps with which you’re familiar, have a recurring theme.

The tales begin in less austere, more relaxed times. The individual takes out a self-employed mortgage with an introductory fixed-rate.

Time flies, and, before they know it, that fixed rate is due to elapse. In a panic, they apply to remortgage, to set another fixed term.

Upon doing so, their lender tells them it’s no longer in a position to offer them finance. At least not of the magnitude they require. Continue reading about  Self-employed income + High St criteria = mortgage rejection!

Specialist brokers: the self-employed’s best route to mortgages

Recent years have seen significant growth in people launching their own businesses. But what effect has this surge had on self-employed people’s ability to get mortgages?

The growth in the self-employed populace shows some correlation with post-credit crunch job losses. But the fall-out that ensued the 2008 collapse changed traditional employees’ attitudes.

People began to question job security; no one company was too big to succumb to wave after wave of recession. The mass migration produced an unprecedented result.

The CIPD‘s Autumn 2011 Labour Market Outlook reports 4.1 million self-employed in the UK. That’s a record level, which equates to staggering 14.2% of the working population.

The question is: have mortgage lenders’ attitudes to self-employment changed, given this seismic shift? Continue reading about  Specialist brokers: the self-employed’s best route to mortgages

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