Mortgage deals for self-employed: what you need to know

The process that involves self-employed individuals applying for mortgage can be quite different.

06:44 27 August 2013

Self-employed individuals may find it a bit difficult to find lenders to approve their mortgage loan. The reason behind this is pretty simple; lenders would want to make sure that they’ll be paid and the idea of lending the money to somebody who runs their own business could seem risky. These lenders do not have an assurance that the business will thrive throughout the loan term.

However, don’t be disheartened. You can still apply for mortgage and get it approved even if you’re self-employed.

The first thing that you need to do is give lenders proofs that your business is thriving and that it brings you with regular profits. If you have other means of income, be sure to tell them about that as well. This gives them an assurance that you’ll be able to repay your loan. Also, ensure that your credit score is impressive. Offering to pay bigger down payment (say, more than 20per cent) will also help.

When looking for lenders, make use of the Internet and get quotes from as many mortgage providers as possible. Ensure that you tell them about your situation to get realistic quotes. You would want to tell them the nature of your business, the amount of money you make every month/year, the amount of down payment that you can afford, and your credit score.