Mortgages Uncovered

Under new plans drawn up by the City watchdog, self employed persons will have to wait at least two years before they can get a loan. New business traders will thus not be able to buy their first home or even move house. This also means that those people who find that their one year introductory mortgage is coming to an end will be stuck on the standard variable rate until their two year trading anniversary.

The change has come about because from today lenders will have to confirm their applicant’s income which means that self-cert mortgages are effectively a no-no.

So how do you get a mortgage if you are self employed?

You now need to show two years tax returns or two years company accounts’ to get a mortgage if you are self employed.