Being self employed and getting a mortgage

[kimi1101]

Hi. I lived with my boyfriend in his flat, and we just broke up, so now im staying with a friend. but what i wanna ask is...i have a flat which i rent out. i bought it when i was employed and havent told them im now self employed (dont know if that is bad or not) but its fairly easy maintained. the rent pays the mortgage and more, my insurances are cheaper then when i lived there myself, and i do it privately to save on a rental fee. so 1. should i tell the mortgage company that im self employed

and 2. how easy is it to get another mortgage while you are self employed? i wanna hopefully be able to buy myself another wee flat to live in on my own. i heard you have to put down 25% deposit. not acheivable for me just now (even if i remortgage the other flat).

sorry if this is all gobeldegook.

xxx

 

[weezie]

I think you do have to tell your mortgage lenders of a change in circumstance if you are renewing a mortgage agreement but for now as long as you can keep up the payments they won't mind how you get your money. Does it say anything about it in your contract though?

From what I understand as a self employed person looking for a new mortgage you need to show proof of income so your last few years tax returns. I would contact a few mortgage lenders as some will and some won't give mortgages to self employed people. I heard deposits were at 25% but it depends on the lender. :hug:

 

[persianista]

You MUST tell the mortgage company that the flat is rented, and your insurance company. You are in breach of your mortgage terms.
At the moment there are very few self cert mortgages available, and I think 25% deposit is about the minimum. It is worth talking to a broker to find out the exact position. They cost you nothing, and sometimes have access to deals