By Ed Emerson
For all you seeking mortgages as contractors, freelancers, company directors or the self-employed, the recent popular theory that the interest base rate will be cut down from its long-standing seven-year basement level of 0.5% to 0.25% – or less – should be a boon to your future plans.
After all, we’re already at historically low interest rates, where borrowing money for things like house purchases hasn’t been this cheap in 300 years.
And the benefit of a further rate cut will likely mean even cheaper fixed rate borrowing opportunities that will protect you at least for a while from the inevitable interest rate rises of the future.
But there’s another point to be made here.
Opaquely shopping for mortgages for the self-employed is an utter waste of time.
Unfortunately, for those seeking self-employed mortgages in the UK, there is only a select number of lenders who are actually set up to be able to deal with your specific type of mortgage application.
In fact there are only about six lenders in the UK, according to our recent research in The 5 Steps to Getting a Mortgage When You’re Self-Employed who actually focus on this marketplace and are able to process the various documentation you will need to provide to prove your income.
Thus, any current or new shopping for interest rate deals on your part, particularly if the Bank of England opts to cut rates down any further, should be focused on Aldermore Bank, Halifax, Clydesdale, Virgin Money, Saffron Building Society and Kensington.
These lenders know how to assess your circumstances, where the other lenders in the UK will struggle to do so.
Check out our deeper look into Aldermore Bank here and find out what they are looking for from applicants seeking mortgage when they’re self-employed.
And don’t sully your credit report with rejections because you were only focused on the rate, and not the lenders who can actually work with you.
Want to know more?
Why not see what HNW Magazine’s Self-Employed Mortgages section here has to offer you in terms of advice, guidance and options.
And look out for HNW Magazine’s report The 5 Steps to Getting a Mortgage When You’re Self-Employed for consultants, freelancers and entrepreneurs, out soon, and take advantage of the mistakes others have made so that you don’t have to.
Ed Emerson, Editor, HNW Magazine