Self-employed mortgages, as
term implies are mortgages designed for those that are self-employed. Traditionally it's been more difficult for
self-employed to get mortgages.Mortgage lenders preferred to see
regular income guaranteed by employment. However this has changed in recent years. There are now mortgage lenders who specialise in
self-employed market.
If you are self-employed or unable to prove your income, it can be difficult finding a suitable mortgage. There are a number of reasons why it is often more difficult for those in such situations,
main ones are that
income of
person tends to fluctuate, and they are unable to prove their income like those regularly employed who can produce payslips.
Self-employed people may experience a problem finding a mortgage. Those in standard full-time employment are basically guaranteed to be paid, and can get references from their employer as well as be able to show their payslips therefore proving their income. Mortgage lenders like this as it cuts down their risks.
If you are self-employed or working on a short-term contract, you could be financially solvent, and able to keep up payments easily, but that doesn't make it easy for you to prove that you will keep up payments to your mortgage lender. They want to know that that you will be able to keep up payments for a full term, usually 25 years, not just over
next year.
If you have no proof of income because you are self-employed and do not have three years worth of accounts it is unlikely that any high street mortgage lender will offer you a mortgage.