The self-employed have it difficult to get a mortgage. It is hard but not impossible to Buy To Let Self Cert Mortgage. Any self-employed veteran can demonstrate sufficient capacity to face the payment of monthly installments, but for a financial institution that is not enough. In fact, the entity and the person who will pass the application to risk assessment will know little of our business if we do not tell.
By definition, a freelancer is a profile with a high risk. Why? Because, in principle, it is very difficult to assure what average income they will have in, for example, the next decade. On the contrary, a salaried employee with an indefinite contract seems to have less risk, although in reality that is not so true. But, facing a bank, the guarantees of a payroll are much greater than the apparent instability of the self-employed.
To get a mortgage, the self-employed must show that they will be able to face the payments. There are many more factors to consider, factors that we will try to put in order and explain accurately. We can order the requirements and documents to request a mortgage with certain guarantees in three groups.
The quotation of the self-employed
Many self-employed, most of them, quote for the minimum base. That is, they pay a minimum self-employed quota that implies a rather ungenerous future retirement pension. This fact, which can be very justifiable for many of these professionals for various reasons, will mean for the bank that the repayment term of the loan will be less than for other workers. The difference between quoting by the minimum or maximum is quite important in this case.
Antiquity and demonstration of past income
It is not enough to deliver a copy of the last Income Tax return and monthly income. In addition, if they are not accredited at least two years old, there is nothing to do. For the self-employed, a minimum set of documents that prove their solvency and history would be the statements of accounts, documents such as the annual VAT summary, the statements of the current year, Social Security payments, last receipts of freelancers, and certificates of being up to date with the Treasury ... Everything that can be presented will play in our favor.
The definitive dossier
If there is something decisive at the time that in a financial institution take seriously the Self Cert Secured Loans who applies for a mortgage, it is the dossier. This dossier, well presented, clear and agile reading, designed to "sell" the idea that we can return the loan to spare, should bring together certain documentation of interest for a well-informed bank director:
- The history of accounts (we refer to those of the business, in this case) and the balance history.
- A list of clients, both past and present.
- Certify that you have always been up to date in paying taxes and Social Security contributions.
- All the patrimonial assets of your property.
- The income statements of the last periods.
- Document the business and its future evolution, adding the forecasts. The objective is to show what the business really is, how it has evolved and the future perspectives to guarantee solvency.