Mortgage and Refinancing Information Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

How To Get a Mortgage If You're Self-Employed

If you are self-employed, work on a contract basis, or have an income that is irregular or comes from multiple sources, it will generally be harder for you to get a mortgage than it is for someone who is an employee and can easily prove their income.

A self-employed person is someone who runs their own business and works for themselves without an employer. Directors of small limited companies, although technically employed on a PAYEE basis, will generally be classed as self employed when it comes to applying for a mortgage or re-mortgage.

With over three million self-employed individuals in the UK, the attitude of many mortgage lenders towards the self-employed population is a problem that can affect a large number of people, even though many self-employed people often earn more than a lot of salaried workers.

The problem stems from the fact that the majority of mainstream mortgage lenders require proof of income when assessing a mortgage or re-mortgage application. Employed people can use their pay slips and P60 as proof of salary, but there is no such straightforward equivalent if you are self-employed.

In place of pay slips, self-employed workers may be asked to provide audited accounts that show their income over the last three years. However, in many cases, these accounts will not give an accurate reflection of how much money a self-employed person is making. This is because if the accountant who prepared the accounts is doing his job properly, he will have offset as many allowable expenses as possible against tax. This has the effect of reducing the self-employed person's net profit, upon which the lender will base the size of mortgage or re-mortgage they are prepared to offer.

The situation is even worse for the newly self-employed, as they may not yet have been trading long enough to have had three years' worth of accounts prepared.

This is where mortgage lenders who specialize in self-certification mortgages and self-employed mortgages come into their own. These types of lenders appreciate the different and complex working patterns of the self-employed, contract workers, and people whose jobs are seasonal. They are prepared to look at each case individually and assess each mortgage application on its own merits, rather than just applying a series of one-size-fits-all income tests. In many cases, self-certification means that you do not need to supply any proof of income - you just declare what your income is without having to provide any supporting documentation.

In addition, specialist self-employed and self-certification lenders are more likely to offer flexible mortgage products that allow overpayments and underpayments. This is ideal for people whose income can fluctuate throughout the year, as it means you can overpay when times are good and underpay if you're business is going through a quiet period.

-----

Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

David Miles is the editor of a number of mortgage websites including UK Mortgages & Remortgages where you can find further advice on mortgages or request a personalized mortgage quote or illustration.

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: Buy To Let Mortgages - To Let in Reasonable Capital Growth with Financial Obligation Every individual needs a home and every home needs an owner. Perhaps you are already a homeowner. Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve Home equity is your own personal money machine. If you want financial freedom, a home equity loan is probably the best way to achieve it. Sell Your Home and Invest at the Same Time I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. Refinance Your Home Equity Loan Refinancing your home equity loan is an excellent way to save money. By refinancing your home equity loan you can lower your interest rate and finance for a longer or shorter term. New York Refinance - Refinancing in New York If you are looking to refinance in New York, it helps to get the facts before you begin the refinancing process. If you have an existing high interest mortgage, refinancing now could be the best choice for you. What is a Tracker Mortgage? A tracker mortgage 'tracks' the Bank of England base rate, meaning your mortgage stays in line with interest rates and the market in general. The result on your monthly mortgage interest payments is that they go up when the base rate goes up and go down when the base rate goes down. Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing Refinancing can be a very simple process. You fill out a few applications, take the best offer and you're done. This Secret Weapon Will Enable You To Close Up To 200% more Home Remodel Sales Many Homeowners are not aware of all the options that are available to them when it comes to Home Loans. As a Home Remodeling Specialist you have a very powerful sales tool that most of your competitors don't even know exists. What is a Commercial Mortgage? A commercial mortgage is a loan that uses commercial property as collateral. A commercial mortgage is a business loan which is secured against a commercial property. Understanding Mortgage Points When a mortgage broker asks a borrower to pay points, he or she is asking for a lending fee expressed as a percentage of the value of the loan. For example, two points on a deal worth $100,000 works out to $2,000. The Best Tactics for Getting a Quick Homeowner Loan Trying to find a quick homeowner loan can seem difficult at times, especially considering the days or even weeks that it can take for some banks and other lenders to approve or deny a loan. The worst part is that if you're denied your loan, then you have to start over at another bank and go through the same wait again! Luckily, there are other options available that speed up the process of getting a quick homeowner loan? you just have to know where to look for them. 10 Questions To Ask Your Mortgage Rep or Bank This post is a must read for anyone considering purchasing a home be it today, tomorrow or next year. It is sound advice. Mortgage - What, Why, When, and How? What is a mortgage? Here's what The New Merriam - Webster Dictionary definition is: "a transfer of rights to a piece of property usu. as security for the payment of a loan or debt that becomes void when the debt is paid. Interest Only Home Loan - Is It Right For You? There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you. Guide to Remortgages Here is a useful guide to remortgages. What is a remortgage? A remortgage is when the terms of the original mortgage are renegotiated, and usually means that the borrower increases the amount that they are borrowing, which is often possible due to a rise in the value of the property. Council Right to Buy Mortgage - Helping Everyone Have a Home of "We will help every Council Tenant to become Home Owners" With these historic words Margaret Thatcher initiated an equally historic concept of council right to buy scheme. However, the groundwork for this scheme had been laid much before in the 70s under the reigns of the labor government. Sorting through mortgage elimination programs Mortgage elimination programs are all the rage these days. In the event that you don't know what they are, it's a really basic concept. Avoiding Foreclosure Scams If your mortgage company is threatening foreclosure, there are things you can do to avoid it (see my article titled "How to Avoid Foreclosure"). However, you should be aware of scams. Kingsland Saint Marys & Kings Bay Real Estate - VA Mortgage Information For Home Buyers A VA guaranteed mortgage is the usually the best way for active or inactive veterans to purchase a home. The VA mortgage allows the buyer to purchase a home with absolutely no out of pocket expenses! There are closing costs associated with the purchase of a home. Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You? When you're shopping for a new home-especially for the first time-all the terms and expressions may be confusing and difficult to understand. Adjustable rate, fixed rate, balloon payment - how do you decide which is the right type of home mortgage for you if you're not even sure what each of them are? The name of the mortgage type usually has to do with how you'll pay for your loan - how the interest on the loan is being determined by the bank. Find antique wooden jewelry at www.OfficeJax.Has.It

Click here to Find used office equipment in Ohio at www.OfficeJax.Has.It Find the best fleamarkets at www.FleaMarketWorld.Has.It www.Akron.Has.It Find electric powered vehicles at www.NoGas.Drives.It Akron City directory Free Automatic Link Exchange Flea Market World Find homes for rent in Akron Ohio www.homes4rent.has.it iphone-4-less below wholesale prices

Click above to place your AD here

[Back to Top] Ohio RealEstate auction news and listings for Akron, Ohio Akron crafts and hobby news center best home remedies and do it yourself tips Akron currency trading Akron Ohio pet news Advertising and promotions Akron, Ohio The Akron blogging news center Akron Ohio web site design news Akron Mortgaging and refinancing Web site design tips

HOME | SITE MAP © 2012 - 2024 All Rights Reserved Increase pagerank with HitsSurfer