Self Employed

When it comes to securing a self-employed mortgage, the financial crisis has made it much tougher for borrowers who work for themselves. They are often penalised for their status, charged higher rates or rejected completely as lenders regard them as a higher risk than their full time, employed counterparts. Nevertheless, there are still many lenders in the market providing self-employed mortgages and getting the right mortgage advice can be crucial.

Why Caboodle?

Our qualified mortgage advisers are very experienced in dealing with self-employed borrowers and know which lenders to approach. We will search our comprehensive panel to find you the best mortgage deal for your circumstances, saving you time and hassle.

Self Cert Mortgages no longer an option…

The principle of a self-certification (or “self cert”) mortgage was that you declared what you earned to a lender without having to provide proof of that income. This was particularly attractive for self-employed borrowers who couldn’t rely on a regular salary and who don’t have payslips or a P60 to prove income.

However, the credit crunch and the reduced risk approach being taken by many mortgage lenders brought an abrupt end to these sometimes controversial products. Unfortunately, in some quarters there was widespread evidence to suggest these products were being abused as many client incomes were being overstated. As a result, these products have been axed completely leaving the self-employed mortgage customer with less choice.

High Street v Specialist Lenders

Whilst it is still possible to get a self-employed mortgage from the high street, it is now far more difficult than before due to their tightened credit score and proof of earnings requirements. Fortunately, a number of specialist lenders still exist who are willing to help borrowers that have been turned down by the high street for a self-employed mortgage.

Don’t have accounts covering 3 years…

Don’t worry if you can’t provide 3 years accounts, some of the specialist lenders Caboodle has access to are willing to help self-employed borrowers based on just their self-assessment tax returns, SA302’s or in some cases on just one year of accounts.

Caboodle also have access to a wide panel of lenders who provide self-employed secured loans.

For more information speak to one of our advisers today on 0800 151 2407 or 0121 308 9114. Alternatively complete the short online enquiry form to request a call back.

The overall cost for comparison is 3.7% APRC. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.

Representative example: A capital and interest mortgage of £131,500 payable over 25 years initially on a fixed rate of 2.99% for 5 years and then a variable tracker rate at 3.49% above the Bank Base Rate (currently 0.25%) for the remaining term would require 60 monthly payments of £625.10 and 240 monthly payments of £668.70. The total amount payable would be £198,109 made up of the loan amount (£131,500), interest (£64,900), product fee (£999), broker fee (£595), final repayment charge (£80) & completion fee (£35). The overall cost for comparison is 3.7% APRC representative.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.