Self Employed Mortgages And, Remortgages
For a long time self employed people, company directors, freelancers and people on bonuses have found it difficult to get finance for their home on a mortgage or remortgage. The problem is for tax reasons the self employed person minimizes their income however in many cases they will earn much more than can be proved through certified accounts or tax returns. Because traditionally a bank or building society will only lend you 3.5 X your earnings this limits the borrowing amount of self employed people, company directors, freelancers and people on bonuses to much lower than they can afford.

Another problem is that most small businesses don’t keep certified accounts and thus cannot provide a mortgage lender with the required proof of earnings. New startups have a similar problem because many lenders require 2 years of certified accounts and a new business running for a year cannot provide these figures.

Luckilly

for self employed people, company directors, freelancers and people on bonuses there is a specialized mortgage product called a self certification or self cert mortgage. When applying for an self certification or self cert mortgage the application just asks you how much you earn per year. The main difference here though is that you are not required to prove your earnings, the lender just trust what amount you disclosed to be correct. To find out more about self employed mortgage or remortgages visit http://www.selfemployedhelp.co.uk/

Damian is the owner of many finance related websites. Including mortgage, loans and debt advice.