Do you have your business? Are you self-employed? So you have ever experienced any kind of difficulties in procuring the home loan because of your self-employment? If yes, so you should be delighted enough to know that there are various mortgage lenders offering Contractor Mortgages to the borrowers who are self-employed.
There are a huge variety of diverse kinds of the loan products that are available to the self-employed. The famous and renowned mortgages is Self Cert Mortgage that are conventional and the FHA loans, along with the bank statement programs (that allow you to use the personal and the business bank statements that could verify the income rather than the tax returns).
When you use the tax returns, you would be able to qualify for the conventional or FHA loan. For various business owners, for the contractors, and other kinds of self-employed professionals, with the help of the tax returns might not always be an option. However, for individuals, bank statement loans could be the best – and the available option is to get the mortgage.
Is there any risks?
If you plan to Buy To Let Self Cert Mortgage from the lender outside the UK can certainly make losing of the home much likely when you are unable to keep well with the repayment options of the mortgage. The reason is that because the mortgage will not be regulated through the FCA and will also come with the less protection as compared to one from the UK lender, like:
– Rules that are treated much fairly when you will face some financial difficulties as well as cannot meet the payments.
– Being capable to refer any kind of the complaints to services of Financial Ombudsman.
– Help from FCA when anything goes wrong, as the mortgage will get regulated in country when lender is based.
– Compensation from the adviser when they suggested the mortgage you are unable to afford.
– There are even some of the restrictions about how the lender based in Europe will be able to contact you. They can just contact you online, this means that you will not be able to call them or you will not be able to write them if you required any kind of help or information.
– The FCA has also issued the warning about the self-certified mortgages, suggesting the borrowers of the restricted protection.
Although they usually have highlighted lack of protection which comes with the self-certification mortgages, the FCA suggest that you need to decide to get it and so you must:
- Talk to the mortgage adviser which is generally regulated in UK
- Check about the protection comes with mortgage through checking their various sets of terms as well as conditions
- You may also check how do the mortgage service provider deals with any kind of the missed repayments
- You also need to check what the fees that they are charging are
- You should also check who the regulator of the lender is
