Legislative changes over the last few years to protect borrowers have made life easier for some and harder for others. While many borrowers now enjoy higher levels of protection, borrowing can now be harder for self-employed entrepreneurs.
Many often struggle to be accepted by mainstream mortgage lenders who tend to be more rigid in sticking to their strict loan writing criteria. The large lenders tend to put home loans for the self-employed in their ‘non-standard’ basket — this usually means higher fees and more approval hoops to jump through.
Where once bank managers had the power of discretion, home loans today are all done by a set formula. There are multiple boxes to tick with a box marked “income” at the top.
Many readers of this website are small to medium business owners and entrepreneurs. They probably prefer to keep money in their business and their income may be intentionally low compared to a salaried employee. This is an area where a professional mortgage broker comes into their own through their ability to add value by saving money and time for their clients.
If a self-employed borrower wants to ensure they have the very best deal, then using he services of qualified and MFAA approved broker is a good place to start. Despite the large number of online tools and loan comparison websites, unearthing the best mortgage deal still requires some skill and work. A good mortgage broker will not only factor in fees in establishing the best deal. They will also tailor the recommendation to fit their client’s circumstances.
Working out which loan is cheapest is far more complicated than just looking for the lowest interest rate – the difference in associated fees can vary hugely.
A good mortgage broker will help you cover a large amount of the market quickly and efficiently, offering advice and helping to calculate the real cost of any deal.