It was only a few years ago that your chance of being accepted for a self employed mortgage were slim to none. “REJECTED,” was the one word answer.
Now, in 2018 we are living in a completely different world. These days mortgages for the self employed are all the rage and something that lenders like to say is “ACCEPTED,” when they get your application.
Not just any old lender though…a specialist lender. Someone who “specialises” in offering mortgages to people who are not traditional in their lifestyle and don’t confirm to the rules.
If you are a 9 to fiver with a traditional pay packet then specialist lenders are not for you. Try a bank or established mortgage company.
However, most people reading this fall under the specialist banner, especially those contractors and freelancers who work for themselves.
According to a recent index report who interviewed 198 mortgage intermediaries, what they found is that 21% of specialist lending is now focused on the self employed.
What are some other specialist lending niches you might be wondering? In the report, these are listed as… identified interest only (15%), complex income (14%), high loan to value (14%), lending into retirement (11%), and low income business (7%).
Experts are predicting that due to the recent boom in self employment, specialist lenders are now going to be focusing more on the self employed and offering them very competitive interest rates.
So if you are a contractor who wants to buy your first house or a freelancer who is interested in getting on the property ladder, now is the perfect time to start investigating your options.
Of course, buying property is not always the best option. Sometimes, contractors and freelancers need to be flexible in their ability to go abroad, especially those who are “international” and would consider working anywhere in the world.
If that includes you, then think twice about buying is my advice. Renting might be the best choice, so you are free to pack your bags at a minutes notice and jet off to your next hot contracting job.
The same can be said for self employed people living in and around London. Yes, our nations capital is one of the best places to be for business and networking, but is buying property there really the best idea? Probably not.
A one bedroom flat in central London doesn’t come cheap, and you will no doubt need a 7 figure income in order for specialist mortgage lenders to even take you seriously.
Whatever you decide to do, just know that getting a mortgage is not something to be taken lightly, so make sure you get all the facts before making your application to a specialist lender.