Approximately 15% of the UK working population works on a self-employed basis. Many self-employed people are earning excellent money. However, many high street and online loan lenders are reticent about lending to you if you cannot prove your earnings via pay slips or 3 years full accounts.
If you have three years self employed accounts it is likely that you can get a standard mortgage loan. If not, you may need to look at a self certification mortgage. These types of mortgage works on your potential earnings, enabling you to self declare your income without necessarily having to prove it via standard means.
Self-employed mortgages are a non standard type of mortgage. In the 1990s when self certification mortgages started to become popular in the UK, rates tended to be quite a lot higher than standard mortgages. As the market has evolved, and lenders have more data on delinquency (i.e. the level of mortgage arrears) the loading associated with self certification loans has steadily decreased such that there are some very keenly priced self certification mortgages today.
Self Certification loan deals differ in what they offer. If you would like increased flexibility then you can look at a mortgage loan that offers payment holidays and the opportunity to overpay when you are earning particularly good money.
If you are self employed and concerned as to how to secure the most suitable cheap loan for your circumstances, please get in touch to see what is on offer.
