The blunt answer is no. No, you will not have to pay higher rates.
You get the same mortgages and the same interest rates as everyone else, however different lenders/banks cater for different people and circumstances. One lender might be awesome for your 9-5 employed friends, but being self-employed they’ll consider your circumstances differently.
If you know where to look, you can find a lender that will give you exactly what you need.
The main aim when you’re mortgage hunting is to achieve the lowest interest rate available for your circumstances. You’ll need to factor in the points below, which are common scenarios I come across. These will all affect how you find the lowest rate and the lenders that will accept you:
The lenders/banks will also be considering:
Each lender/bank has a different set of criteria and therefore have a specific preference for each of the above points.
Getting the lowest interest rate is knowing which lender to apply to in the first place.
You also really need to consider the other fees associated with the mortgage. The lowest rate might come with the highest fees. It’s about finding a balance that you and your budget are comfortable with. This is the same for all of you, whether you’re self-employed or not.
That should answer the biggest question for you, but if you want to know more in detail how your circumstances will affect your mortgage, you NEED to talk with an adviser. It’s the best way to get a clear view of what your mortgage battle will be like.
There’s no one size fits all, especially when it comes to the self-employed. Getting specific advice is how you’ll get the mortgage you’re after.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.