I’ve talked before on this blog about how difficult it can be for contractors to get a mortgage or any kind of loan. For many people it’s almost impossible.
It has just come to my attention that two companies are trying to change that, by launching a new range of mortgage products that are aimed at self employed people.
In other words, if you are a contractor or have an umbrella company and you want a mortgage, then it could just be the solution you have been looking for.
Paragon Mortgages and The Mortgage Lender are the two companies offering the new range of mortgages, with an emphasis by both of them on lending to people with “complicated sources of income.”
If you’ve applied for mortgages before, only to be told the only way to get accepted is to provide 10 years worth of wage slips or to have initial enthusiasm from a lender, but then to get declined when you tell them you are self employed…maybe this could be the answer? It is worth getting in contact with these companies if you ask me.
I’ve always got self employed people telling me they just can’t seem to get a mortgage, with the main reason being their income is not as easy to work out as someone who is employed in a job.
Not only that, but when you have only been self employed for a year or two, then mortgage companies are going to be a bit more hesitant in giving you the cash.
This isn’t the wild west days of lending that we witnessed a few years ago. We can be thankful for that of course, because if it continued then the UK economy was heading for disaster.
However, it is possible that lending has gone a bit too far the other way just recently, especially for self employed people, and I think that needs to change. Let’s wait to see if it does with these two new mortgage companies entering the scene.
A spokesperson for Paragon Mortgages said, “customers with complex incomes looking for a residential mortgage deserve access to a wider choice of mortgage products.”
Typically, with a bank or any kind of mainstream lending company, they will process your application using their automated technology As soon as it comes to the part where you are self employed, their system automatically declines your application.
With specialist companies such as Paragon Mortgages and The Mortgage Lender, they are more prepared to look at your situation and spend time going over the smaller details. That doesn’t mean you are guaranteed to get accepted, but at least you know you will get treated fairly.