Easier than you think
The truth is that getting a self-employed buy-to-let mortgage is easier than most people understand.
The reason for a buy-to-let mortgage
In this way, your personal history and income are less important than the ability for the property itself to make money.
More important here is your background in the property market and how much you know about being a landlord.
Do you have what it takes to profit from a buy-to-let mortgage? – Just how good a landlord are you?
First time landlords – do you turn a profit?
What is self cert? Is it relevant?Self-certification is where, rather than prove your income and affordability to the lender, you simply sign to promise you can afford it and they give you a mortgage based on that promise.
A self cert mortgage was one of the traditional ways a self-employed person could get a mortgage without jumping through the complicated hoops of three-years accounting.
A core issue that was in part blamed for the credit crunch of 2007/08, self cert mortgages have been banned in the UK since 2011. It is possible to still get self cert mortgages through European lenders but doing so has some risk as you are no longer protected by UK laws and regulations.
Mortgage lenders who are willing to look at only a single year of accounts have been unfairly accused of being self-cert. This isn’t the case, as they do perform a full level of due diligence in checking your affordability. That said, it provides many of the benefits of the old self-cert system only with the added security that you know you have legitimately passed their criteria!
Buy to let deposits
On a £360,000 property, this would mean a deposit of £90,000.
Raising that capital can be difficult, but because a buy-to-let mortgage is a profit-making investment, lenders are keen to see that you are a significant part of that investment too. Obviously, if your self-employed business is doing well, raising the capital will be easier than if you are struggling in your day-to-day life.
It is also possible to cover the deposit by taking a charge on your existing properties (maybe even the family home). Speak to an advisor if you want to take this course of action.
Getting advice and a self-employed buy-to-let mortgage with The Mortgage Hut
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