There's nothing new about wanting to line your own pockets instead of that of your boss, but making the leap to get out there and do it yourself is a very big step to take. However, in recent years the UK has seen a massive influx in the number of people preferring to be self-employed.
What it means to be self-employed has changed significantly from what it meant only a decade ago. There are still plenty of 'traditional' self-employed people, including builders, plumbers and taxi drivers, but there's a new breed of self-employed person, with glamourous job titles like personal trainer, freelance PA and web developer, that are starting to dominate and define what it means to be self-employed. In fact, it's this new breed of self-employed person that has pushed the UK's average self-employed earnings up by one third in recent years*.
Regardless of how well self-employed people are doing in recent years, the problems associated with being self-employed haven't changed - getting a mortgage can still be extremely difficult! So how does a self-employed person go about getting a mortgage?
Lenders realised pretty quickly that the majority of self-employed people genuinely earn enough to purchase their own house with a mortgage - after all, everyone should have the right to buy a house. So mortgage lenders introduced a product called a self certified mortgage [http://www.nandc-selfemployed.co.uk] (or a more commonly used term is self-cert mortgage). This sort of mortgage is perfect for anyone who has an irregular income, earns seasonal income, relies on most of their income coming from big annual bonuses or doesn't have enough accounts or payslips to buy a property. Although you can't prove your income you effectively 'self-certify' how much you can afford to borrow.
Being a self-cert mortgage customer doesn't mean you have less choice or flexibility about the number or type of mortgage products available to you. Most common mortgage products will still be available to you, including Fixed Rate Mortgages, Variable Rate Mortgages, Tracker Mortgages and Capped Rate Mortgages, the only difference is that you will have to self certify how much you earn.
And if you're feeling particularly entrepreneurial then a self-cert mortgage [http://www.nandc-selfemployed.co.uk] could be even more beneficial than you first thought. An advantage of self-cert mortgages is that it sometimes makes it easier than usual to get a portable mortgage. This allows you to easily move the mortgage from one house to another without incurring early repayment fees. Lots of property developers take advantage of this type of mortgage if they intend to purchase a house, do it up and sell it on for a profit.
If working for yourself and owning a house is this easy, it's a wonder more of us aren't self-employed!
*Source: Economic & Labour Market Review 07/07
What it means to be self-employed has changed significantly from what it meant only a decade ago. There are still plenty of 'traditional' self-employed people, including builders, plumbers and taxi drivers, but there's a new breed of self-employed person, with glamourous job titles like personal trainer, freelance PA and web developer, that are starting to dominate and define what it means to be self-employed. In fact, it's this new breed of self-employed person that has pushed the UK's average self-employed earnings up by one third in recent years*.
Regardless of how well self-employed people are doing in recent years, the problems associated with being self-employed haven't changed - getting a mortgage can still be extremely difficult! So how does a self-employed person go about getting a mortgage?
Lenders realised pretty quickly that the majority of self-employed people genuinely earn enough to purchase their own house with a mortgage - after all, everyone should have the right to buy a house. So mortgage lenders introduced a product called a self certified mortgage [http://www.nandc-selfemployed.co.uk] (or a more commonly used term is self-cert mortgage). This sort of mortgage is perfect for anyone who has an irregular income, earns seasonal income, relies on most of their income coming from big annual bonuses or doesn't have enough accounts or payslips to buy a property. Although you can't prove your income you effectively 'self-certify' how much you can afford to borrow.
Being a self-cert mortgage customer doesn't mean you have less choice or flexibility about the number or type of mortgage products available to you. Most common mortgage products will still be available to you, including Fixed Rate Mortgages, Variable Rate Mortgages, Tracker Mortgages and Capped Rate Mortgages, the only difference is that you will have to self certify how much you earn.
And if you're feeling particularly entrepreneurial then a self-cert mortgage [http://www.nandc-selfemployed.co.uk] could be even more beneficial than you first thought. An advantage of self-cert mortgages is that it sometimes makes it easier than usual to get a portable mortgage. This allows you to easily move the mortgage from one house to another without incurring early repayment fees. Lots of property developers take advantage of this type of mortgage if they intend to purchase a house, do it up and sell it on for a profit.
If working for yourself and owning a house is this easy, it's a wonder more of us aren't self-employed!
*Source: Economic & Labour Market Review 07/07
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