UK Self-Employed Mortgages – The Mortgage Market Rules

By Ed Emerson 

I’ve said it before and I’ll say it again: Whether your goal is to get a UK self-employed mortgage, make more money, attract new customers, or even start a new business; if you don’t understand the motivations of the audience(s) you want to work with, the less likely it is that you will succeed. 

In the UK mortgage arena there are some things you need to know right from the start to keep you grounded and informed: 

  • Following the relatively lax regulations that preceded the 2008/09 recession, the UK’s Financial Conduct Authority changed the game entirely with the Mortgage Market Review (MMR) 

And because of MMR…: 

  • UK self-employed mortgage interviews now take a lot longer than they used to, and are far more detailed in order to assess mortgage product suitability and the borrower’s wherewithall 
  • Even re-mortgagers will likely have to go through an advised process, and a new affordability assessment 
  • Lenders will apply an interest rate “stress test” to ensure loans will still pass affordability requirements 
  • Everyone’s expenditures will be more closely scrutinised, including normal spending like credit cards, other loans, cost of children and even your spending habits, and 
  • You can still get an interest-only mortgages, but borrowers must demonstrate how they’re going to satisfy the loan at the end of term, and any additional costs to do it. 

And the above list is a long way from being comprehensive.

UK Self-Employed Mortgage 

With all that in mind, the UK is still currently operating in the lowest interest rate environment in more than 300 years. 

The 0.5% base rate announced on Thursday 5 March 2009, brought about an opportunity to borrow money at historically low levels of interest. 

And you can almost bank on never seeing rates this low again, at least not in this lifetime. 

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 a UK Self-Employed Mortgage out soon, and take advantage of the mistakes others have made so that you don’t have to.

Ed Emerson, Editor, HNW Magazine

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