Self Employed Mortgages

If you can produce accounts going back two or more years showing that you should be able to meet the required mortgage repayments, then even though you will be credit scored in the application process, getting a self employed mortgage should not pose a problem. In general the accounts will be accepted if they have been prepared by professional accountants. The mortgage lender will have a charge on your property so their loan is covered should you default on repayments. If you want to borrow a high percentage of the valuation of the house then you may have to pay a premium - the higher the percentage the higher the premium. With more people going self employed, lenders know that this sector of the mortgage market is too big and profitable to neglect.

If you have not been self-employed long enough to have a history of accounts you may still be able to get a mortgage, but the interest rate will be higher, and there may be other costs to further increase the APR on the mortgage.

Many self-employed persons prefer flexible mortgages which, although they usually cost more, give them the flexibility to pay back more or less each month, depending on the earnings. And depending on the type of mortgage, some allow payment breaks where you don't have to make any repayments in some months (but you have to make up the shortfall in other months).