Really this just falls down to who’s going to offer you the cheapest and best possible interest rate. The best lender is the one that gives you the right amount of money that you need at the lowest interest rate, and with the lowest overall fees. Some mortgage lenders give you a free valuation, some want to charge a higher arrangement fee than others, and so on. So it’s important to take into consideration the fees as well as the mortgage amount and interest rate.
Part of my job as a broker, is to work out which deal is the most cost efficient, and cheapest over your fixed, discount, or tracker period, whichever it may be.
Fixed: means you fix your mortgage costs for a certain period, and once that period has ended your rate goes to the Standard Variable Rate.
Discount: means a discount is taken off the lender’s Standard Variable Rate in the early years of your mortgage term.
Tracker: means mortgage payments ‘track’ a specific interest rate, such as the Bank of England base rate. As that base rate rises and falls, so does your mortgage interest rate.
So it depends on your unique circumstances. If you’ve been Self-Employed for 1 year, there’s a handful of lenders that will look at that. As a limited company, there’s a handful of lenders that will take into account your net profit, rather than like 95% of the market using just your salary and dividends.
It all boils down to how much you want to borrow, and who’s offering that at the lowest interest rate with the lowest fees associated to that mortgage.
I realise that sounds very simple, but if you’re going at it alone or have tried to approach lenders yourself in the past, you’ll know that it’s no walk in the park. Not only are there some lenders that are only available to you through a broker, but there are many that you won’t have even heard of, that don’t appear on your high-street. Being Self-Employed means that you could very well need one of those specialist lenders that you won’t have heard of before. I’ve worked hard to gain the knowledge I need to get you with the right lender.
Thanks very much indeed. If anyone else has any other questions, please do like and share, leave comments below, let me know what you think of this blog, and I’ll be very very happy to answer any questions that you might have to make obtaining a mortgage as a self-employed person, much simpler, much quicker, and much easier.