The Truth About Self Certification Loans
In the past ten years things have changed for the self employed seeking loans. Lenders have had to change their policy as more and more small businesses are setting up.
The lenders who did not like the variable incomes of the self employed have had to realise that more and more staff are employed on a self employed basis. To keep their businesses growing they have had to offer self certification loans to their customers.
Although these are often specialist lenders some high street firms do now offer this service, realising that not all customers can provide payslips as a proof of income.
These loans often cost more with a larger deposit being asked for and slightly higher interest rates but they can be found.
Most lenders will be concerned with credit histories and bank statements as well as audited accounts and the feasibility of repayment.
The amount of deposit you can raise will help your cause ( 10% minimum though some have been known to take 5% ) The more your deposit the less your interest rate.
Although 3 years’ accounts are useful, there are now lenders using different methods of assessment, so don’t be put off if you have less than this as more and more lenders are turning to the self employed as a means of increasing their sales.
A 25% deposit could mean many of the obstacles to a loan are cancelled out. Most important is to ensure that your mortgage loan is affordable as any over inflation of your income could lead to repossession.
In some cases a flexible mortgage can be arranged if your business is prone to seasonal or other fluxuations in income. The main thing is to do your homework and not give up. There is a loan out there for you.
Use of this article or exerts thereof without the prior permission of the author is unlawful and will result in prosecution, if you wish to use the article please contact info@selfcertmortgageuk.co.uk.
