Self Employed

When it comes to securing a self employed mortgage, the financial crisis has made it much tougher for borrowers who are self employed. 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 a number of 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 have some of the industry leading technology and 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.

We can often arrange face-to-face appointments in Mere Green, Four Oaks, Sutton Coldfield, Lichfield, Tamworth, Burton, Birmingham, Walsall, West Bromwich and many other surrounding areas of Staffordshire and the West Midlands. Alternatively we can make arrangements for you to visit our offices to discuss your requirements in more detail.

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.