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FAQ: Specialist Mortgages

By: Emma Eilbeck BA (hons) - Updated: 4 Jul 2012 | comments*Discuss
 
Mortgage Specialist Self-employed

It used to be possible for almost anyone to get a mortgage, whether you were self-employed and couldn’t prove your income or you had been declared bankrupt in the past couple of years.

The specialist mortgage market however has almost dried up in recent times as banks become reluctant to lend to people who don’t fit their picture perfect profile.

Can I Get a Buy-To-Let Mortgage?

Amateur landlords are slowly becoming a thing of the past, in recent years people have cashed in on a boom in buy-to-let lenders and many people took on buy-to-let properties as a hobby. Buy-to-let mortgages are still available but you will have to put down around a 30% deposit on a property and show you are able to comfortably pay the mortgage on that property as well as any others you have. You will almost certainly not get a buy-to-let mortgage if you have any county court judgements against your name.

I Have Two CCJs, Can I Get a Mortgage?

The specialist market for sub-prime mortgages still exists but not as it used to. There are a very small percentage of lenders offering mortgages to those that have a bad credit record. These lenders will often require a deposit of 30% plus if you are a first-time buyer and charge you a higher rate of interest.

If you are remortgaging they will expect you to have a reasonable amount of equity tied up in your property. If you have a maximum of two county court judgements and are able to explain why these occurred you should still have a chance of getting a mortgage.

I’m Self-Employed, Can I Get a Mortgage?

It is still possible for self-employed people to get a mortgage but the key is being able to prove your income. In the past a lot of lenders would give mortgages to people in some cases without any proof of income. Nowadays you will need to have some money saved in the bank and a record of your wages for the past 3 months, if not longer. It will be a lot harder for you to get a mortgage because you are self-employed and you will need to go through a stricter application process.

I Have No Deposit, Can I Get a Mortgage?

The simple answer is no, unless you have a minimum of a 5-10% deposit you will find it hard to get a mortgage. You would of not had a problem a couple of years ago but now you need to have some capital to buy.

Can I Get a Commercial Mortgage?

The commercial mortgage sector has suffered on a similar scale to the residential sector. Commercial mortgages are generally for a higher sum of money so it is understandable that lenders are more reluctant to lend to these types of borrowers. You can still get commercial mortgages, but you will need to prove to the lender that you are a good investment and can pay your mortgage.

Is Now a Good Time to Get an Offset Mortgage?

A credit crunch is a great time to pay off some of your mortgage through an offset mortgage. Saving rates are not looking very attractive at the moment, so if you have some spare money you are better paying off large chunks of your mortgage.

This can either be through an offset mortgage or by saving the money in a different account and paying off one lump sum. This should help you get your mortgage rate down a lot quicker.

The specialist mortgage market has become a lot more condensed since the credit crunch. The mortgage market now centres on prime, residential mortgages, which means if you have any sort if blip on your credit record you will find it tough to get a mortgage. Lenders are treading very carefully at the moment, so anything outside of the norm they are treating with caution.

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