People who have a stable job sometimes find it difficult to avail a mortgage. Then you can understand how difficult it is for a self-employed individual to get a loan. Such people may feel that it is next to impossible to avail a mortgage. Many people have lost their jobs due to recession and bad economy and this has caused people to resort to self-employment. However, self-employed people have always difficulty in getting personal loans.

Always keep in mind that there are many money lenders who are out there to provide home loans for self-employed people. If you are self-employed, it does not mean that you are not eligible for a mortgage. However, you should prepare yourself to go though strenuous process to get your loan approved.

Here are some must-know tips on mortgages for self-employed:

1.Approach people whom you know well and talk to your local bank with which you have an account since a long time. Since you have been known to the bank from a long time, you will stand a good chance to get your loan approved. Alternatively, you can go through different money lending companies available online and find a reliable mortgage provider. However, if you work with your local bank, you will surely find yourself in a better situation to get a loan.

2.Organise the documents that will be required whilst applying for a mortgage. The documents that the lender will most likely asked are:

– income tax returns record of the past 2 years

– bank account statements

– the licence of your business (if required)

– two identity proofs

3.Your payment history should not show any defaults or negative markings that will stop you from availing the loan. If you are currently staying on rent, you should ask the owner of the house to provide the proofs of regular payments like rent checks. If you own a house, you are not required to provide any other document to avail a loan.

4.You should be able to prove the lending institution that you are able to earn a living through your business. Few years ago, one could easily avail a home loan if he provided a proof of the income without even submitting any documents. However, these days it has become very important to show an income proof to the mortgage provider as presenting tax returns alone cannot help you in availing a loan.

The mortgage provider will ask you to submit as many documents as possible to prove that you are earning well through your business even though you are self-employed. The main reason why you need to provide an income proof is to convince the mortgage provider that you will be able to repay the loan even though you do not have a regular job but are self-employed.

5.Stay in contact with the mortgage broker and ask him if there are any problems in getting the loan approved. Try your best to furnish any documents that you are asked to submit.

Author Bio: It may seem next to impossible for self-employed individuals to avail a loan. However, even self-employed individuals can apply for mortgage. Visit the mortgages locally to find out local mortgage providers in the UK.

Category: Real Estate
Keywords: mortgages, mortgage