There are now 4.6 million self-employed people in the UK, yet so many high street lenders appear not to be interested in them.
Traditional lenders may only agree a mortgage if as a self-employed borrower your business turnover shows a year on year increase. Or they may demand to see business plans drawn up for a specified period in the future. If you have been in business for less than three years, they may simply reject your application out of hand. But do not despair. A specialist mortgage lender understands all the issues at stake here and will judge each case on its own merits rather than go by strict, pre-set lending criteria that may exclude many perfectly acceptable borrowers.
Specialist mortgage lenders are more flexible and understanding than the high street giants, although they do generally ask that you have been self-employed for a minimum of twelve months. While it is true to say that in the past the range of mortgages available to the self-employed was limited, there are more and more products provided by specialist lenders these days, including discounts, fixed rates, offset and flexible mortgages along with others. Even if you have a bad credit rating there are deals available.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.