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Self Employed Mortgages
A mortgage loan is
money lent out by a mortgage lender that helps an individual pay for
property. If the loan is not re-payed per the contract, the mortgage
lender can cease the property and sell it to obtain the money they
There are two factors that make up a UK self employed mortgage loan.
One is capital and the other is interest. Capital means the amount
of money the individual borrowed to purchase the property. Interest
is an amount that the lender charges to let a person borrow the
The main type of mortgage recommended to be taken out is a repayment
mortgage (even though many others may be offered). Repayment
mortgages are the traditional type of mortgages. This type of
mortgage is the only kind that will ensure the property is actually
yours after the mortgage has been paid in full.
Many times, people who are self employed or are contract workers
paid via commission or bonuses, are discriminated against when it
comes to obtaining a self employed mortgage. There are, however,
mortgage companies that specialise in self employed loans. Most
lenders today will be involved with self employed mortgages as well.
Consistent work of the same occupation can help when applying for a
self employed mortgage. This shows stability, which in turn makes
the borrower a better candidate for a loan.
Many may think that being self employed and acquiring a loan are
difficult. Today, there are many UK self employed mortgages that can
fit most everyone's needs. It can also prove frustrating to someone
who is self employed when they may make more money than someone else
who is able to easily obtain a mortgage loan and sometimes be lent
more money than those self employed.
The mortgage lender for the self employed may use your net income
rather than disposable income even though it may be higher than the
It is generally not necessary to have an office or shop to apply for
a UK self employed mortgage. For example, royalties from writing may
be the type of self employment that is an individual's income and
this can often qualify for a mortgage loan.