Self Employed mortgage deals are also known as self certification, or non status. About 15% of the UK population works on a self employed basis. Although many self employed people earn excellent money and are able to live a very comfortable lifestyle they may not fit into the boxes that are ticked for standard mortgages. As such this new classification was introduced in the 1980's to supply the increasing demand.
If you have more than two or three years self employed accounts it is likely that you can get a standard mortgage. If not... then a self employed mortgage could be an option for you subject to affordability. True self certs do not require 3 years accounts. Some however do ask for a letter from an accountant stating that you can afford the repayments of the loan.
Over recent years there has been an increase in the number of mortgage products for self employed people, and the flexibility that they allow. Some will allow overpayments and payment holidays based upon loan lending criteria. This flexibility makes the best loan products more appealing to those on high commission based incomes who also earn a basic salary.
Interest rates on self employed mortgages are slightly higher than prime standard cheal loan mortgage rates. This is because the lenders perceive a higher risk for payments coming from self employed or irregular incomes than those from employed salaries. Having said this there are some very competitive rates on the market.
Our partners are self employed mortgage specialists. If you think that you may need to self certify your income then please fill out the form on this site and one of our partner mortgage brokers will be in touch within a few business hours.
