Self Employed Mortgages UK, USA, Canada

Being self-employed can be a profitable and worthwhile experience, but it is also very unpredictable and potentially quite risky. A good business idea that is integrated sensibly into a gap in the market can make a lot of money and be very profitable for the entrepreneur, but periods of financial prominence can just as quickly be followed by periods of poor revenue and slow business. This unpredictable nature of small businesses can lead to many self-employed people experiencing difficulties when applying for a mortgage or loan of any kind.

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Even if a self-employed individual has a good credit rating and history and is of a healthy financial status, mortgage companies sometimes require a little more convincing that the borrower will be able to fully repay the mortgage over an extended period of time. Mortgage lenders will normally require at least 3 years worth of accounts and financial records, approved by a certified accountant, before they consider issuing a mortgage to a self-employed individual. This is sometimes just the beginning of the difficulties that a self-employed individual may encounter when applying for a mortgage or other loan.

There are companies however who specialise in dealing with the self-employed, and who can often provide mortgages when there is nowhere else to turn. These specialist companies issue mortgages that present you with a more flexible way to pay your mortgage when you are self-employed; they understand the unpredictable nature of running a small business (by recognising that there are periods of both high and low revenue), and try as much as possible to reflect this in their mortgage deals by offering certain levels of flexibility.

A self-certification mortgage is one of the most common options provided by mortgage companies who do business with the self-employed. This is one in which the application process avoids the usual detailed procedure of proving your business earnings via audited accounts or employers references. A significant deposit will sometimes be required, and if an applicant is able to provide a deposit of a higher percentage than the lender’s asking amount, they may qualify for better interest rates on the subsequent repayments. The lender may be quite flexible with regard to repayments, because they recognise the unpredictable nature of a small, self-run business.

These self-certification mortgage schemes are sometimes available regardless of whether you are employed or self-employed and are also available as mortgages or re-mortgages. Some lenders may also consider applicants with a poor credit history or credit rating, allowing everyone the chance to obtain the affordable mortgage that they require. The main disadvantage to a self-certification mortgage is that the interest rates are usually higher than for a standard mortgage.

For other relevant sites try - uk mortgages
For income/mortgage protection - try mortgage protection insurance
For online mortgages - try Loans UK