SELF-CERTIFICATION MORTGAGES IN SCOTLAND
Self-certification mortgages in Scotland for the self-employed. Low interest rate self-certification mortgages, variable rate and discount mortgages in Scotland.
Scotland mortgages introduce the self-employed to mortgage advisors specialising in self-certification mortgages and mortgage brokers specialising in adverse credit and poor credit history and other more difficult to obtain mortgages like buyers with Trust Deeds (IVA), first time buyers, buyers with a poor credit history, Decrees (CCJs) and previous sequestration (bankruptcy) to mortgage brokers based in Scotland. You will find free information and guides about the best mortgage arrangements to suit your requirements and obtain the best flexible rate mortgages from mortgage advisors and brokers.
If you are unable to prove your income easily, it is often difficult to obtain a mortgage. This means that if you are self-employed, work on a contract basis, or have an income that comes from multiple sources, it will generally be harder for you to get a mortgage than it is for someone who is an employee and can show simple documentation to demonstrate their earnings.
For people who have difficulty proving their income, but who require a mortgage in Scotland, a self-certification mortgage could be the answer.
A self-employed person is someone who runs their own business and works for themselves, rather than being employed by someone else. Directors of small limited companies will also typically be classified as self employed when it comes to applying for a mortgage or remortgage, even though technically they will tend to be employed on a PAYE basis by their own limited company.
There are more than three million self-employed individuals in the UK. This means that the problems obtaining a mortgage when you are self-employed can affect a large number of people, even though many self-employed people often earn more than a lot of salaried workers.
The reason it becomes hard to get a mortgage when you are self-employed is because a lot of mainstream mortgage lenders want proof of your income when considering a mortgage or remortgage application. People who are employed by someone else can use their payslips and their annual P60 as proof of their salary. But when you work for yourself, there is no such straightforward equivalent to a P60 or payslips.
Instead of payslips, self-employed mortgage applicants may be asked to provide the mortgage lender with audited accounts that show their income over the last three years. However, in a lot of instances, these accounts will not provide an accurate picture of how much money a self-employed person is earning. This is because the accountant who prepared the accounts will be likely to have offset as many allowable expenses as possible against tax. This is done to reduce the tax bill for the business, but it also has the effect of reducing the self-employed person’s net profit. And for most high-street mortgage lenders, it is this net profit figure which they will use when deciding on the size of mortgage or they are prepared to offer.
The situation is usually even worse for the newly self-employed, as they may not yet have been trading long enough to have had three years’ worth of accounts prepared.
But, if you are self-employed and need a mortgage, all is not lost. There are a number of mortgage lenders who offer self-certification mortgages in Scotland. Self-certification mortgage lenders are willing to look at each case individually and assess each mortgage application on its own merits, rather than just working their way through a series of one-size-fits-all income tests. In many cases, self-certification mortgages mean that you don’t need to provide any proof of your income – you simply declare what your income is without having to show the mortgage lender any supporting documentation.
Self-certification mortgages are more likely to offer flexible mortgage terms that allow you to make overpayments and underpayments. This can be helpful for people whose income is prone to fluctuate throughout the year, as it means you can overpay when times are good and underpay if your business is going through a quiet period.
To get more information on the range of self-certification mortgages in Scotland, please complete our no-obligation mortgage enquiry form and we will arrange for a specialist mortgage broker to contact you.
Self-certification mortgages in Scotland for the self-employed. Low interest rate self-certification mortgages, variable rate and discount mortgages in Scotland.
Scotland mortgages introduce the self-employed to mortgage advisors specialising in self-certification mortgages and mortgage brokers specialising in adverse credit and poor credit history and other more difficult to obtain mortgages like buyers with Trust Deeds (IVA), first time buyers, buyers with a poor credit history, Decrees (CCJs) and previous sequestration (bankruptcy) to mortgage brokers based in Scotland. You will find free information and guides about the best mortgage arrangements to suit your requirements and obtain the best flexible rate mortgages from mortgage advisors and brokers.
If you are unable to prove your income easily, it is often difficult to obtain a mortgage. This means that if you are self-employed, work on a contract basis, or have an income that comes from multiple sources, it will generally be harder for you to get a mortgage than it is for someone who is an employee and can show simple documentation to demonstrate their earnings.
For people who have difficulty proving their income, but who require a mortgage in Scotland, a self-certification mortgage could be the answer.
A self-employed person is someone who runs their own business and works for themselves, rather than being employed by someone else. Directors of small limited companies will also typically be classified as self employed when it comes to applying for a mortgage or remortgage, even though technically they will tend to be employed on a PAYE basis by their own limited company.
There are more than three million self-employed individuals in the UK. This means that the problems obtaining a mortgage when you are self-employed can affect a large number of people, even though many self-employed people often earn more than a lot of salaried workers.
The reason it becomes hard to get a mortgage when you are self-employed is because a lot of mainstream mortgage lenders want proof of your income when considering a mortgage or remortgage application. People who are employed by someone else can use their payslips and their annual P60 as proof of their salary. But when you work for yourself, there is no such straightforward equivalent to a P60 or payslips.
Instead of payslips, self-employed mortgage applicants may be asked to provide the mortgage lender with audited accounts that show their income over the last three years. However, in a lot of instances, these accounts will not provide an accurate picture of how much money a self-employed person is earning. This is because the accountant who prepared the accounts will be likely to have offset as many allowable expenses as possible against tax. This is done to reduce the tax bill for the business, but it also has the effect of reducing the self-employed person’s net profit. And for most high-street mortgage lenders, it is this net profit figure which they will use when deciding on the size of mortgage or they are prepared to offer.
The situation is usually even worse for the newly self-employed, as they may not yet have been trading long enough to have had three years’ worth of accounts prepared.
But, if you are self-employed and need a mortgage, all is not lost. There are a number of mortgage lenders who offer self-certification mortgages in Scotland. Self-certification mortgage lenders are willing to look at each case individually and assess each mortgage application on its own merits, rather than just working their way through a series of one-size-fits-all income tests. In many cases, self-certification mortgages mean that you don’t need to provide any proof of your income – you simply declare what your income is without having to show the mortgage lender any supporting documentation.
Self-certification mortgages are more likely to offer flexible mortgage terms that allow you to make overpayments and underpayments. This can be helpful for people whose income is prone to fluctuate throughout the year, as it means you can overpay when times are good and underpay if your business is going through a quiet period.
To get more information on the range of self-certification mortgages in Scotland, please complete our no-obligation mortgage enquiry form and we will arrange for a specialist mortgage broker to contact you.
