Do you have your business? Are you self-employed? So you have
ever experienced any kind of difficulties in procuring the home loan because of
your self-employment? If yes, so you should be delighted enough to know that
there are various mortgage lenders offering Contractor
Mortgages to the borrowers who are self-employed.
There are a huge variety of diverse kinds of the loan products
that are available to the self-employed. The famous and renowned
mortgages is Self Cert Mortgage that are conventional and the
FHA loans, along with the bank statement programs (that allow you to use the
personal and the business bank statements that could verify the income rather
than the tax returns).
When you use the tax returns, you would be able to qualify for
the conventional or FHA loan. For various business owners, for the contractors,
and other kinds of self-employed professionals, with the help of the tax
returns might not always be an option. However, for individuals, bank
statement loans could be the best – and the available option is to get the
mortgage.
Is there any risks?
If you plan to Buy
To Let Self Cert Mortgage from the lender outside the UK can
certainly make losing of the home much likely when you are unable to keep well
with the repayment options of the mortgage. The reason is that
because the mortgage will not be regulated through the FCA and will also come
with the less protection as compared to one from the UK lender, like:
- Rules that are treated much fairly
when you will face some financial difficulties as well as cannot meet the
payments.
- Being capable to refer any kind of
the complaints to services of Financial Ombudsman.
- Help from FCA when anything goes
wrong, as the mortgage will get regulated in country when lender is based.
- Compensation from the adviser when
they suggested the mortgage you are unable to afford.
- There are even some of the
restrictions about how the lender based in Europe will be able to contact you.
They can just contact you online, this means that you will not be able to call
them or you will not be able to write them if you required any kind of help or
information.
- The FCA has also issued the warning
about the self-certified mortgages, suggesting the borrowers of the restricted
protection.
Although they usually have highlighted lack of protection which
comes with the self-certification mortgages, the FCA suggest that you need to
decide to get it and so you must:
1. Talk to the mortgage adviser which
is generally regulated in UK
2. Check about the protection comes
with mortgage through checking their various sets of terms as well as
conditions
3. You may also check how do the
mortgage service provider deals with any kind of the missed repayments
4. You also need to check what the
fees that they are charging are
5. You should also check who the
regulator of the lender is
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