Mortgage – How can advisors help the self-employed secure a mortgage?
Research has shown that one third of all UK self-employed people think mortgage lenders are less likely to consider them because of their employment status. This is not actually the case; however, it can be a bit more complicated for them to get a mortgage loan. So, what can advisors do to help?
Provide expert knowledge
Being represented by a professional who has got the industry standard CeMAP mortgage advisor qualification will be a significant advantage to a self-employed mortgage seeker. An advisor can steer them towards those lenders who are more receptive to the self-employed, as well as the ones likely to provide the most reasonable rates.
Aid with preparation
Advisors can ensure that their self-employed clients know what they need to do to improve their chances of receiving a mortgage offer. It will help if they have at least three years of steady self-employment behind them, but lenders will also likely want to see accounts put together by a qualified accountant, with proof of income over a period of two years or more.
Those with less than two years of self-employment will find it harder to persuade lenders that they are a good risk, but it is not impossible. An advisor can provide tips to avoid setting off alarm bells in the minds of potential lenders, such as avoiding spending money on gambling or loan repayments for around six months before applying.
While it may be a little more difficult to secure a mortgage when self-employed, the services of a qualified mortgage advisor can be a great help to such prospective homeowners.