It is likely that you are having an endless search for the perfect mortgage.
You check for some sort of impediments and it is possible that lenders are rejecting you since you are self employed.
If that seems to be your case, then keep in mind that you are not alone. As per statistics the number of people who are self employed has been increasing. You can also include the people who are freelancers and those who were only hired on a temporary basis. These people were also rejected by some mortgage providers as they fall with the same grounds like you, being self-employed.
When these providers will proceed with such attitude towards those huge groups of people, it is no longer hard to imagine that they might later on be losing their business. Learn more at http://ezinearticles.com/?Going-The-Self-Certified-Mortgage-Route&id=877104
Looking at the grounds provided, it can be related to not having a stable income as this applies to all self employed as the work is mostly project based. The most usual or typical case for the self employed is earning a lot for a month then nothing for the following month. Because of this, the likelihood of arrears is increasing.
Another reason for rejection is the source of income from various sources. Because of such, the computation can be a challenge. An example is a freelancer who works not just for single client but for many others and not just within his or her locality but even from another country. Also, the payment is not the same, it also varies depending on the project given and client.
The last reason would be that these people mostly cannot prove that their income is similar just like a common employee. Employed personnel can prove their income by showing pay slip or salary slip. However, these documents are the ones that cannot be provided by the self-employed.
In order to patch the pieces or give solution to the problem, that is where self-certified mortgaging comes into play. Such kind of mortgage can enable the self employed, contractors and the freelancers with the loan that they need. They can get the appropriate funds that they require even without worrying of showing proof of income. With this mortgage type, the borrower is asked to make declaration of his income and there will be no further checking that will be done. Since no documents will be asked or required, what would matters most will be the words of the borrower.
It is good to remember that the self certified mortgage is associated with higher interest rates when compared with the regular kind of mortgage considering that the risk is higher.
The amount that can be borrowed by the borrower will be assessed by adding the yearly income of the customer together with his spouse if incase the two are working. This will include commissions and bonuses as well as other sources of income. The customers will be the one to decide the amount that they can manage to pay upon the loan approval on a monthly basis.