- 28
- Aug
In these days of the credit crunch the biggest losers are those borrowers who banks consider as risky. Risky borrowers include a whole range of society including those on lower incomes, people who have missed payments in the past, as well as the self-employed.
If you are self-employed a on a contract then it can be easier to get a loan, however it is still not as easy as if you are employed by a company. Lenders differ in their requirements but generally employers want to see that your contracts are renewed regularly and that your business is not struggling.
People who have just started out working for themselves will also find that it is more difficult to secure credit than if you have been self-employed for a long period for time.
If you are looking for a home loan and you are self employed then using a mortgage broker might be the right way to go. Brokers generally tend to know what kind of people different lenders like to lend to. As well as this, many brokers have access to special deals which are not readily available on the high street.
Using a broker will also cut down on the chance of too many rejections coming up on your credit rating system because each time you apply for a loan a footprint is left on your credit rating. Many lenders will automatically turn you down if they see that you have recently applied for multiple loans, as they assume that you have been turned down and are getting desperate.
