TIMES ARE MOVING ON….
…in the mortgage world, especially for those who work for themselves.
As confidence returns to the mortgage market, supposed bad news for business owners still abound. Some saying that you cannot get a mortgage if you are self employed or that you are treated differently.
NOT TRUE, you are treated no differently than someone who is employed in that you have to prove that you can afford the mortgage you are applying for.
BUT, for the self employed as a sole trader, in a partnership, a contractor or a company director, things have suddenly got even better, We can now consider:-
• No credit scoring with some lenders
• Self employed or trading for a minimum trading period of 12 months
• Only most recent years accounts used with some lenders
• Contractors, no restriction on occupation, just need copy of contract
• Company directors – salary plus dividend or own share of net profit after tax can be used as income
• Up to 95% loan to value
• CCJ’s and defaults over 24 months old can be ignored by some lenders
• Mortgages can be written to age 75 with some lenders
• Some arrears and missed payments can be ignored by some lenders
• Competitive rates
• Interest only considered by some lenders, with conditions
For those who simply have a variable rate mortgage. Beware, the Bank of England has said that the date for interest rate rises is coming closer-prompting speculation they could start to go up next year. This will be good news for savers, but bad news for millions of home owners.
Don’t whatever you do miss the boat, it will be too late to bag a historically low fixed rate after rates start to rise as they will be gone. Secure your future mortgage deal now.