Self employed with bad credit mortgage solutions even for people with 1 years accounts:
- Missed payments, defaults, CCJs accepted
- Can work of last year’s account / Tax return figures
- Deposit levels as little as 10 to 15%
- Missed payments on communication bills ignored
If you are Self employed with a bad credit mortgage products are going to difficult to obtain and the chances are you have already tried and been declined by the Lenders with a high street presence. Bad credit mortgages can be classed as many different things: it could be a few simple missed payments that are relatively recent; or more serious missed payments on secured loan; or mortgages right the way through to defaults and county court judgements (ccjs).
Another challenge with a Self employed with bad credit mortgage is the fact that many high street lenders will need a least 2 to 3 years account figures, and will generally take the average of your earnings, which means if you’ve had a bad year in that period it could come and affect your mortgage, even though your business is now booming.
The good news is at Niche Advice we specialise in getting Self employed with bad credit mortgage applicants with bad credit. I personally have helped many clients overcome the challenges of getting a mortgage, even though there has been past credit problems, and am more than happy to speak to prospective clients who may have already been rejected down the high Street.
Example Product – Self Employed Fair Credit 65% loan to value (Residential)
[ezcol_1quarter]Initial Rate: 1.49%[/ezcol_1quarter] [ezcol_1quarter]Subsequent: 3.99%[/ezcol_1quarter] [ezcol_1half_end]The overall cost for comparison 3.73% APRC[/ezcol_1half_end]
Features: 1 Year’s Trading. Consider small defaults and CCJs registered over 2 years ago. 1 or 2 missed payments. Self employed minimum trading period 1 year.
| Type and initial benefit period | Fixed until 30/09/2018 |
| Minimum deposit / equity: | 35% |
| Valuation fee | £430 |
| Booking fee | £0 |
| Lender arrangement | £999 |
| Telegraphic transfer / CHAPS fee | £30 |
| Legal fee | £161.27 |
| Early repayment charge | 3/2% in the fixed period |
Example Product – Self Employed Poor Credit 90% loan to value (Residential)
[ezcol_1quarter]Initial Rate: 4.99%[/ezcol_1quarter] [ezcol_1quarter]Subsequent: 5.55%[/ezcol_1quarter] [ezcol_1half_end]The overall cost for comparison 5.68% APRC[/ezcol_1half_end]
Features: Unlimited satisfied CCJs. Unlimited defaults satisfied or not. Mortgage arrears. Provided no adverse credit registered in the last 2 years. Self employed minimum trading period 2 years..
| Type and initial benefit period | Fixed for 2 years. |
| Minimum deposit / equity: | 10% |
| Valuation fee | £500 |
| Booking fee | £0 |
| Lender arrangement | £1299 |
| Telegraphic transfer / CHAPS fee | £30 |
| Legal fee | £150 |
| Early repayment charge | 3/2% of the amount redeemed in the fixed period |
Example Product – Self Employed Bad Credit 85% loan to value (Residential)
[ezcol_1quarter]Initial Rate: 5.89%%[/ezcol_1quarter] [ezcol_1quarter]Subsequent: 5.50%%[/ezcol_1quarter] [ezcol_1half_end]The overall cost for comparison 5.84% APRC[/ezcol_1half_end]
Features: CCJs up to £2,500 in total (no limit if over 2 years old). Defaults up to £1,500 in total (no limit if over 1 year old). Mortgage arrears 3 missed payments (only 1 missed in last 12 months). Self employed minimum trading period 12 months.
| Type and initial benefit period | Fixed until 31/10/2018 |
| Minimum deposit / equity: | 15% |
| Valuation fee | £485 |
| Booking fee | £0 |
| Lender arrangement | £1495 |
| Telegraphic transfer / CHAPS fee | £35 |
| Legal fee | £216 |
| Early repayment charge | 3/2% of the amount redeemed in the fixed period |
For more information on a Self employed with bad credit mortgage please call complete the enquiry form on this page or call the number below.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage
Important Information
Residential and Buy to Let Mortgages
Rates current as at 07/08/2016 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
