Self Employed Mortgages UK,
USA, Canada
A self-employed individual
with a good credit rating and history and who is of a healthy
financial status may still encounter difficulty in obtaining
a mortgage. Mortgage lenders will normally require at least
3 years worth of accounts and financial records, approved
by a certified accountant, before they consider issuing a
mortgage to a self-employed individual. This is sometimes
just the beginning of the difficulties that a self-employed
individual may encounter when applying for a mortgage or other
loan, due to the unpredictable nature of running a small business.
There are mortgage companies
however who specialise in dealing with the self-employed,
and who can often provide mortgages when there is nowhere
else to turn. These specialist companies issue mortgages that
present you with a more flexible way to pay your mortgage
when you are self-employed; they understand the unpredictable
nature of running a small business (by recognising that there
are periods of both high and low revenue), and try as much
as possible to reflect this in their mortgage deals.
One such offer that is common
is a self-certification mortgage. This is one in which the
application process does not require the usual procedure of
providing financial accounts and references. A significant
deposit will sometimes be required, and if an applicant is
able to provide a deposit of a higher percentage than the
lender’s asking amount, they may qualify for better
interest rates on the subsequent repayments. The lender may
be quite flexible with regard to repayments, because they
recognise the unpredictable nature of a small, self-run business.
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