Both employed and self-employed homeowners looking to remortgage will probably already have realised that there are many pitfalls. Most self-employed people do not receive pay slips and are often paid in cash so they can rarely prove accurate current income levels. Additionally, the last full year’s completed tax return does not require filing until almost 9 months after the normal year end so this information for mortgage lenders is usually deemed as out of date.
This situation can make it very difficult for self-employed applicants to get accepted by mortgage lenders. For this reason, many lenders devised mortgages specifically for the self-employed.
These mortgages were known as self certificate mortgages, for which formal proof of income was not required. Unfortunately, these dynamic home loans that were scarcely available in the first place have now completely vanished from the UK market. Due to tighter regulation and the more aggressive income-assessing protocols of major lenders, self certificate mortgages are no longer available for UK borrowers.
The elimination of traditional self certificate mortgages in the UK came as a blow to thousands of self-employed citizens. Nevertheless, this doesn’t mean that qualifying for a competitive mortgage is out of the question if you are self-employed. Instead, it simply means exploring the available alternatives.
At UK Property Finance, we provide access to the UK’s most flexible and accessible range of mortgage products to suit all purposes. We are a “Whole of Market” brokerage which means we have access to virtually all UK lenders. Many other brokers offer mortgages from a small selection of lenders known as a panel or even just a single lender. Being “Whole of Market” allows us to access the best possible rates without our clients needing to do the work.
Whether you’re ready to go ahead or simply exploring the available options, we’d be delighted to hear from you. Contact a member of the team at UK Property Finance anytime for an obligation-free consultation.
The key to successfully obtaining a mortgage as a self-employed worker lies in strategically targeting appropriate lenders and mortgage products. You may be counted out of the running on the High Street, but this doesn’t mean you won’t have more luck with a specialist lender.
Unlike the vast majority of major banks, the UK’s specialist lending community considers all applications by way of individual merit. If you are clearly in a strong financial position and can comfortably afford the repayments, there’s every chance you will qualify for a mortgage. In which case, deposit requirements and general borrowing costs can be very similar to those of traditional mortgages.
If not, even more competitive, in some instances.
From secured loans to bridging finance to specialist property development finance and more, there are countless options to explore. Rather than wasting your time and effort on lenders who no longer offer self certificate mortgages, we strongly suggest consulting with an independent broker at the earliest possible stage.
Book your consultation with UK Property Finance today, to discuss the alternative options to a traditional self certificate mortgage.