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Are you self-employed, a freelancer or a contractor and looking for a mortgage? You are likely to have encountered a few more roadblocks than those seeking mortgages through "traditional" employment.

Mortgages for the Self Employed aren’t really any different to mortgages for employed people. The difference is how a lender looks at your income and the way they calculate how much they are willing to lend you. They want to ensure that the payments are affordable – not just now but also in the future.

What does a lender consider to be self-employed?

  • Lenders consider you self-employed if you own more than 20% of the company that generates your main source of income.
  • You could be a sole trader, a partner in a partnership, or a limited company director.
  • Have a good credit history.
  • Self-employed people include freelancers and independent contractors who work for a variety of companies.

This is where our knowledge of the lenders criteria becomes invaluable. We will search the whole of market to find a mortgage lender that will work with you and your unique circumstances. Book in a free first appointment to discuss your situation and options.

Many people believe that because they do not have a good credit history, they will be unable to apply for a mortgage. While it's true that some lenders prefer customers with perfect credit, the concept that having bad credit automatically disqualifies you from getting a mortgage is a big misconception.

A bad credit mortgage is for borrowers who have bad credit, a low credit rating, or a poor credit score. Bad credit applicants can get loans from specialised lenders, though the rates and payments may be higher than for customers with good credit. It may be possible to find a competitive deal if you have sufficient income or a substantial deposit.

Lenders that provide specialist financial products like this tend to be more flexible in their lending, with decisions depending on the age, severity, and source of the credit issue in question, as well as the likelihood of recurrence.

A second charge mortgage, also referred to as a “secured loan” or “second mortgage” allows a person to borrow money on a property which already has an existing mortgage on it. This existing mortgage is called a first charge. The second mortgage is separate from the first mortgage because it’s a completely different product with a new mortgage lender. The rate, period of time and overall mortgage term may be different.

The second charge mortgage rates available to you are likely to be higher than on your first mortgage, as the second lender will be taking on more risk. For example, if you were unable to keep up your mortgage payments and your property was repossessed, the first charge lender would be paid before the second charge lender. This means that if there wasn’t enough equity in the property to pay back both lenders, the second mortgage lender could lose money.

You may need your existing lenders permission in order to secure a second charge on your property.

A commercial mortgage - sometimes called a "commercial property mortgage" or "commercial property loan" - is quite simply a mortgage that’s secured against a commercial property. Commercial properties are properties that house businesses or operate as investments, like an office building or block of flats.

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Mohan Sharma t/a Moransh Financial Services is an appointed representative of Beneficial Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655.

Mohan Sharma t/a Moransh Financial Services is authorised and regulated by the Financial Conduct Authority, FCA number 999482.

Registered in Scotland. Company Registration Number SC772473.


Monday - Friday: 9am 5pm
Evenings & Weekends: By appointment



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