Mortgages for the Self Employed or Over 65s

Mortgages for the self employed have, over the years, sometimes been as difficult and as scarce as those for First Time Buyers.   Lenders have noticed this and a few have taken action.  Over the last couple of weeks, we’ve seen some lenders launch products just for the Self Employed.  Specifically aimed at those newly self employed and with minimal accounts.  Although not household names, specialist lenders have funds to lend and a desire to create products to assist gaps in the mortgage market.  For instance, the usual requirement on the self employed is 2 or 3 years accounts and possibly the SA302 returns from the Inland Revenue.  The specialist lenders, for the right deposit, will allow just 1 years accounts to prove income, normally with an accountant projection for the second full year and probably up to six months personal and business bank statements.

Product innovation is key in the current climates, when volume is not necessarily the be all and end all.  As mentioned, specialist products to fill gaps are high in demand.  We’ve seen some lenders insisting on repayment of their mortgage around age 70 regardless of the clients circumstances and others will no longer allow 'sale of property' to be an acceptable repayment option at the end of the term for those currently with interest only.  Customers are seeking solutions.

One lender, through AToM, has provided one solution to the ‘lending in retirement’ conundrum. Often, retired people have managed their finances successfully over the years and enter retirement mortgage free.  At the same time, many, whilst having no mortgage, also suffer from reduced income and there is a saying in our profession that it is not always wise to have everything tied up in bricks and mortar and yet have nothing to spend.  Others may wish to continue their mortgage passed the normal lender retirement age, whilst they may still be working.  There are schemes where equity can be turned into a mortgage (not equity release) and where off-spring may be able to assist with the repayments in order to secure and protect their inheritance whilst also ensuring a comfortable retirement for their parents.  This is not right for everyone but it is certainly worth talking to a qualified advisor to review all possibilities.