Self employed mortgages have quite a few advantages. You may not have to prove your exact income, if a lender sees that your business is all right, he might accept an estimated value. This will save you a lot of time, since you won’t have to gather all the specific documentation. Maybe this is the most important advantage: it is flexible. The lender may take irregular earnings into account, and the repayment of the mortgage becomes more flexible as it would be in other cases. This means that if you just got some extra money, you can pay back more or you can shorten the period the repayment was agreed on. In these cases, all you have to do is talk to your lender. Another advantage might be that the amount you borrow is based on your real earnings, not on the amount you gave to the taxman. It is easy to see, that this will entitle you to a higher amount of money. In short terms, these would be the advantages of a self employed mortgage. Let us now talk about the disadvantages.
As everything in life, self employed mortgages have a few disadvantages. The first might be that fewer lenders offer mortgages for the self employed than to common employees. So it might be a little harder for you to find a lender with a good offer. Do not worry; it is just a little harder, not impossible. You might be the subject of a little bit higher interest rates just because you are self employed. If you are a good negotiator, you might persuade the lender that he does not have to raise the interest, because you are a responsible person and you can offer him stability. By stability we mean that you are prepared to pay the monthly amount you have agreed on. The last disadvantage is discussable too: the best offers might be available only through mortgage brokers, whom you have to pay. Yes, you might ask a mortgage broker to help you out, but you can find free advice on the internet, so you do not have to pay a dime. You can also avoid paying to mortgage brokers if you do the homework yourself. So if you want to sacrifice a small amount of time in order to save some money, you won’t have to pay anyone to find the best offer for you. You can search for the best offer on the internet, by calling different lenders, or by having a face to face discussion. You can see that with a little effort all the disadvantages of a self employed mortgage can be avoided, all you have to do is try.