Mortgages for the Self Employed, Company Directors and Contractors
As confidence returns to the mortgage market, some bad rumours for business owners still abound. Saying that you cannot get a mortgage if you are self-employed and that you are treated differently.
NOT TRUE, people who work for themselves are treated no differently than someone who is employed, in that they have to prove that they can afford the mortgage they are applying for.
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
• Self-employed for a minimum trading period of 12 months
• Only most recent years accounts used
• Contractors, no restriction on occupation, just need copy of contract & CV
• Company directors, salary plus own share of net profit after tax used as income
• Up to 85% loan to value
• CCJ’s and defaults over 24 months old ignored
• Mortgages for under 55’s can be written to age 75
• Some arrears and missed payments ignored
• Competitive rates
For those who simply have a variable rate mortgage. Beware, the Bank of England’s economist Kristin Forbes has said that the date for interest rate rises is coming closer-prompting speculation they could start to go up this 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.