Being accepted for a self employed mortgage is tough. I think we can all agree on that, can we? Good. So we are now on the same page, You and I.
There is more chance that you will be rejected, rather than accepted, for a self employed mortgage, but does that mean you should give up completely?
Apparently, almost one third of self employed people in the UK have given up on trying to get a mortgage. “Don’t bother,” is what they are saying.
Right now, as me and you are speaking, it is thought that 1 in 5 self employed mortgage applications are turned down right out the gate. The lender sees the words “self employed” and they reject it on the spot.
With this in mind, it’s easy to see why 35% of our nations freelancers, contractors, gig workers, and small business owners decided against applying for a mortgage in the last 5 years.
“I won’t even bother, what is the point,” they say.
Do you know who else I wish “wouldn’t bother?” Those pesky readers of the UC blog who are constantly writing in about umbrellas!
Ok…it might be pouring it down, right now as I am writing this blog post, and we have seen our fair share of rain during these Summer months…and YES selling umbrellas would probably be a money spinner for us…
But why oh why do you keep on writing in and asking about buying umbrellas, when we have said many times…WE DO NOT SELL UMBRELLAS!!
So that my friends, is the last time we will ever say anything about Umbrellas and anybody who even dares write in about them will find their email going straight to the trash. Don’t believe me? My finger is already on the button and just ready to click. Go on, I dare you to ask about umbrellas just one more time…
And so back to self employed mortgages we go and the main reason lenders give for rejection include – not enough tax returns, not enough income and too much being asked for.
In other words, if you want to have a better chance of being accepted for a self employed mortgage then have a few tax returns to hand, make sure you are making a nice bit of cash and don’t ask for too much.
If you do things, the Umbrella Companies way, then you have a much better chance of being successful in the self employed mortgage world.