So You’re Self-Employed and Looking for a Mortgage…

By Ed Emerson

Self-employed mortgage seekers have never seen interest rates as low as they are now, and you’ll likely never be able to borrow money this cheaply again.

At least not in this lifetime.

And just when we thought the borrowing rates couldn’t trickle down even further, they’ve managed to do just that; meaning an even better deal on the table to lock into for the long-term when the Bank of England base rate eventually rises.

First though, a bit of perspective for self-employed mortgage seekers on the borrowing base rate from a long-term perspective. 

Pay close attention to the waterfall-like decline in 2009:

self employed mortgages

Now just for fun, go to HNW’s mortgage calculator here and plug in what it will cost to borrow £250,000 at 15% interest (as it was back in the early 1990s).

Then try calculating £250,000 at just 1% interest.

The difference is astounding!

At 15%, you’ll make 180 payments (15 years) of £3,500 per month, and pay back almost £630,000.

But at 1%, you’ll only make 180 payments (15 years) at £1,500 per month, and pay back about £270,000. 

Any self-employed mortgage seeker out there who can’t grasp the opportunity here should leave now. That’s a £360,000 saving for borrowing the same money at a much lower rate.

We also know that UK house prices have been rising since the recession:

self employed mortgages

And the base rate of 0.5% has flat-lined since March 2009, despite years of speculation, assumptions and guarantees that it would rise:

self employed mortgages

Equally, the cost of all types of fixed rate mortgage options have dropped on average since January 2016.

There are opportunities everywhere. You just need to know which lenders to go to as a self-employed mortgage seeker, and the steps to take to exponentially increase the likelihood of success.

There are only six UK lenders that HNW Magazine has identified who are set up to accommodate you application, and understand the market well enough for self-employed mortgage seekers.

So now that you can see the opportunity (the numbers don’t lie) have a look at the six banks you should approach to make your self-employed mortgage a reality.  

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

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