Self Employed Mortgages
When you’re self-employed your income is often inconsistent and hard to predict This is why self-employed people are considered higher risk. To mitigate the risk banks often require reams of paperwork, and a mortgage can take a lot longer to finalise.
To make matters worse, any good businessman ensures that they claim any allowable expenses from their income for the purposes of taxation. This has the effect of reducing the annual income and in so doing reducing the size of the mortgage for which the borrower will qualify.
This is because lenders use your debt to income ratio to determine the size of the loan they will give you. It is used to calculate the size of repayments that you can afford.
Most lenders will require at least two years of proven earning before offering a loan. If you qualify for the amount that you have requested and you are able to prove your income your mortgage application will be treated like any other employed applicant.
Preparing ahead to secure the mortgage that you want
We can help you
If you’re self-employed a mortgage broker can help you to plan for the day when you require a mortgage.
At Certified Mortgages Brokers, we have professional staff with years of experience
in finding the right mortgage for the self-employed.
We will ensure that you know what information lenders require and we can help you to prepare so that the application process runs smoothly.