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Self Employed Mortgages 2012

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  • Self Employed Mortgages 2012

    Having worked in mortgages for several years now it amazes me that self employed and employed applicants are treated so very differently.

    If you are employed we can secure a high street mortgage based upon an employers reference confirming that the applicant is about to start work. Compare this to the self employed applicant who has to show at least 1 year's proof of income.

    Fortunately, there are a handful of lender's who are prepared to help and assist the self employed - in one case there is a lender who can offer a self employed mortgage where the client has been self employed for less than 1 one year.

    This is a complicated area so it is always worth calling an experienced mortgage broker who has dealt with lots of self employed mortgages.

    Examples include -
    - being self employed for less than 1 year
    - being self employed with no accounts
    - only having an accountant's certificate to prove income
    - only having benefit income
    - only having pension income
    - having an income where no UK tax in paid

    There are many more examples of where we can assist.


    Proof of income is always required and our mortgage brokers will always act responsibly in ensuring that your mortgage is affordable bases upon your income.

  • #2
    Re: Self Employed Mortgages 2012

    Does this mean that self-cert mortgages are still available? Or that self-employed is simply treated as a change of employer for income purposes?

    I wouldn't have been able to get on the property ladder without a self-cert, so it's a shame abuse appears to have canned these.

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    • #3
      Re: Self Employed Mortgages 2012

      Good afternoon Brian,

      Strictly speaking Self Cert Mortgages have been banned; although there are still at least 2 Buy to Let Self Cert mortgage lenders available in 2012.

      We do have options though were we have lender's who can accept 1 year's self employed, pension income, benefits income etc.

      Also - we have lender's who will accept your latest year's self employed income - so if your previous year's were low but you recently did well and can provide a latest HMRC SA302 to confirm this then we can help.

      For me the removal of Self Cert Mortgages and Interest Only mortgages smacks of removing the lender's ability to judge how they lend their money - the credit crunch was not a symptom of self cert mortgage abuse.

      However, because the mortgage market suffered the FSA took it upon themselves to heavily regulate what was otherwise a free market and in so doing may have added petrol to the fire by putting the brakes on an already depressed housing market.

      Please let me know if you need any more help or advice.

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      • #4
        Re: Self Employed Mortgages 2012

        Self Employed Mortgages 2012

        Hi Brian,

        It's always worth contacting us to see how we may help you. Each case is very different and in most circumstances we are able to find a lender who is able to assist you.

        Thank you,

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        • #5
          Re: Self Employed Mortgages 2012

          Oh, just personal interest as these used to be the mainstay of self-employed new ltd company directors.

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          • #6
            Re: Self Employed Mortgages 2012

            Brian,

            We are also able to use just your latest year's profits if they have been increasing year on year. So if you've made a net profit of 2010 £20,000 - 2011 £20,000 - 2012 £60,000 we can use just the £60,000 rather than take an average over 2 to 3 years which will make a big difference for how much you can borrow.

            If you need any more help or advice please let me know.

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