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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 are owed.
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 money.
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 net.
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.