Mortgages and self employed individuals are an interesting mix. Whereas it was once tough to get a mortgage for a home while being a business owner in some shape or form, a myriad of different mortgage types have been forthcoming that provide more options.

The majority of those looking for a home mortgage loan want a loan- but don’t always have enough capital saved to make the down payment. This is especially true for the self employed, who have to carefully keep track of finances and account for taxes. 100% mortgages are great in this instance, as they don’t require any down payment at all- but will indeed require a stellar credit rating and references.

Real estate moguls play a fine game with mortgage brokers and tenants. Getting into the business, as a self employed individual, is easy enough if you can get your hands on a buy to let mortgage. These mortgages are designed to be specifically used with properties that are ready to be rented out to tenants. Because the rent each month easily secures the loan, mortgage brokers are very open in giving out these mortgages to responsible business owners.

In theory, any small business owner can run out of business and lose the ability to pay a home mortgage loan. Lenders at some institutions have realized this, and created the flexible mortgage. These mortgage types allow borrowers to take short vacations in paying on the mortgage, but also allows for overpayment for seasons in which your self employed work is doing above average.

If you don’t mind a little gamble, you can participate in a foreign currency mortgage. Based on the idea that shifting money from one currency to another can turn profit, these mortgage loans can save a drastic amount of money if handled correctly. If you don’t feel up to the challenge, managed foreign currency mortgages exist, in which a professional will handle the account for you. It’s still a gamble, but the odds are on your side if you sign on with the right firm.

If it is your first time buying a home, do look into first-time buyer mortgages. There are grants available that can make the overall cost of the mortgage loan less, under the condition that you have never owned real estate in your name before. It’s a nice gesture of the government to get families started and thriving- without worrying about dizzying debts that come from mortgages.

Closing Comments

Lenders don’t always tell borrowers up front what they can or can’t apply for in terms of mortgages. It’s imperative that you ask a loan officer if your current finances and credit allows you to apply for other types of mortgages- such as those listed or even a wide number of others available.

Learn more on Self Certified Mortgage UK and Self Certificated Mortgages.

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