Self employed mortgages for people with bad credit
If you are self employed and do not have the right type of income documents, then finding a mortgage is a little difficult, especially if you have bad credit.
However, a few lenders do still offer self employed mortgages without the need to provide income documents.
With the help of a good broker, you would be able to find a few such lenders that can help you with funds for purchasing a commercial property.
Many of these lenders and finance companies offer their services in Devon, Fareham, Hertfordshire, Huddersfield, Wales, Wokingham, Ireland, Milton Keynes, Portsmouth, Southampton, Torquay, Wales, Warsash and Yorkshire. The loan to value LTV can be 80%, 85%, 90%, 95%, 100% and sometimes even 110% depending on the lender and your financial background.
If you are looking for guarnated self employed loans and mortgages, then approaching brokers and companies like 85percent and Affordable Mortgages online would be a good option for you.
There are many brokers that can provide you good advice and help you get a free quote, provide information on the interest rates in the market, help you find the cheapest fixed rate and they can provide you free use of an online calculator to calculate the monthly payments that you would have to make on your mortgage.
These brokers have contacts with subprime lenders so they can arrange for no credit check flexible sub prime mortgages if you have non status, adverse or bad credit history. With a self employed mortgage, you would be able to purchase properties like bedsit, holiday cottages, guest house, regulated tenant properties.
One of the best things about these mortgages is that you would not have to worry about not finding mortgages because of the lack of income documents or because of your past credit history. Even though you would definitely be paying a higher interest rate, you would still be able to invest in the kind of property that you want.
{ 4 comments… read them below or add one }
Self employed mortgages used to be common place before the credit crunch. I run a window cleaning business down in Devon and have always had my mortgage including re-mortgages and renewals with my local high street bank. For the first time recently they queried my request to refinance and take some equity out of my property shore up my business. They actually were very reluctant to participate in this. I had to get my father in law as a guarantor to actually get the loan approved. It was a nightmare but we got there in the end.
I really do feel sorry for self employed people. Even before the credit crunch it was not always easy to get a mortgage based on your earnings. Now at the nadir of the recession which lender in their right mind is going to lend money to a self employed builder plumber or window cleaner?
Yeah sure if they put a 25% deposit down it is game on but I mean who can afford those sort of figures expecially in greater london where the price of property is still elevated. What are the solutions out their? I’ve heard of fast track mortgages wwhich suggest these 25% deposits but apart from that what hope or options do we have out there? Thanks Peter
Its a little bit difficult finding a mortgage if you are self employed. Obviously the loan lender is going to ask you for proof of earnings. Unless you can get an accountant to do this on your behalf it is going to be difficult.
Anyone who is self employed does not really have much of an interest to get a mortgage these days. They want to build up their business instead.
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