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Since self-certification mortgages were abandoned by many mortgage lenders several years ago, it has become really difficult for employed and self employed people to prove their income to get a mortgage to help buy property.

I have had some success in the past with helping clients receive mortgage offers depending on an individual’s circumstances.  Many self employed people I have dealt with receive their income from one or a very limited number of sources.  I suppose this is because it is easier to take the step of not receiving a weekly or monthly wage if you have a contract or significant working relationship with another party or organisation.  At least you have a little stability, compared to those people who need a large number of clients and earn a little from each.

If you are in this position and looking to obtain finance, ask the question is it worth becoming employed?  If it is then a copy of your job offer, employment reference or payslip should be enough to resolve the issue.  If you would rather stay self-employed, then expect the bank or building society to ask for a copy of your contract and any past contracts.  The more background you can give as to what you do, how long you have been involved, how you get paid, how often you work the more comfort this will offer to the bank and the better opportunity you are giving yourself at getting that mortgage offer.

If you have a large number of clients and sources of income then you will need to collate that information via accounts or tax assessments or self assessments.  In the past this has often led people to ask the question, how much income do I need to declare to receive a mortgage whilst trying to minimse my tax liability?

Many lenders offer to lend 4 or perhaps 5 x salary and joint salary, so this should give you an idea of what you will need to prove.  If this does not give you enough income then you really need to start thinking?  Is it possible to bring another family in to boost your ability to borrow?  Is there a solution to borrow less?  Can you borrow the money another way?  Or give me a call and I will continue to ask the questions until we can find an acceptable solution.

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Austin Degge


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