The dream of home ownership is such that everyone wants to get a mortgage — even though that have businesses of their very own. Being self employed isn’t without its own set of risks. Your business could go under and leave you on the hook for a lot of debts, including your home. Mortgage lenders are thinking about everything in terms of risk management, but can you really blame them? It’s not like you’re asking for something small here. You’re asking them for a mortgage that could be defaulted on…even if you have no intention of really doing it. The market can be tricky to keep up with, and bad business deals happen even when we have done everything to avoid them.
There’s a mortgage out there for everyone, thanks to the world of specialist lenders. These are lenders that really do understand the risks and still think that self employed people present a good risk. They know that you will do just about everything in your power to keep your home, which means that there’s a deal out there for you. They are even “self certifying”, which means that you don’t have to come up with a bunch of paperwork just to prove your income. However, you’ll want to go the extra mile anyway. Why?
Simple — you get to show them that you’re really serious about getting a home. You are running a legitimate business with its own documentation, which means that you’re much less likely to default. Paperwork that satisfies the income requirements for a home can include the documentation from your accountant certifying that you make a certain amount every year. If you can do that, then you will get similar deals to what employed people would get, or even better. It just depends on what your income is, your savings accounts add up to being…everything can be used to prove that you have more than enough money to handle the mortgage.
Independent brokers are the best for self employed people, because they take it upon themselves to get you the best deal possible. With the way that people switch mortgages in the UK, they know that repeat business is almost certain if they are going to be your mortgage broker. It’s an incentive for them to take very, very good care of you if they can get away with having you select them in the first place.
You do need to make sure that you truly have the monthly income coming in to really handle a mortgage. This isn’t something that the mortgage adviser can really tell you. Yes, they can tell you about your chances and get you approved, but that’s different than actually being able to afford it. You might think that you’ll be able to let out the property later down the line. While this is possible, you don’t want to count on it if things get really bad. You need to look at what you would do if your business crashed in a few years. Would you still be able to make your payments? Would you have the savings to be able to take care of business anyway? These aren’t the easiest of questions to handle, but they are questions that definitely have to be taken care of no matter what.
Don’t give up on your own goals. If you really do dream about having your own place, then it’s up to you to crunch the numbers to make absolutely sure that you’re going to be able to enjoy your home for a very long time to come. Good luck with everything!