Buying a property for the first time can often seem like an uphill battle, especially if you’re in the market for the first time. Nevertheless, the act of owning property is itself a magical feeling.
Unfortunately, however, things aren’t that simple for freelancers, who face an extremely tough time becoming homeowners. Mortgages and other such long-term loan payments are difficult to acquire since there’s no guarantee of work, and getting paid can be tricky, too.
The pandemic has done nothing except exacerbate the problem. Building societies and banks has increased the minimum deposit requirement for self-employed workers and freelancers even in these stressful times. Falling in line with the bone-breaking requirements for owning a property, most freelancers have shut their mode of working on getting a regular 9-to-5 job.
So, what else can a freelancer do?
The injustice of the situation just doesn’t sit well with us, so today, we bring you essential tips from a mortgage advisor for self-employed and freelance workers to get a foot on the property ladder.
Let’s get right into it.
1. Finding the Best Bank
Being a freelancer, you’d know just how many hurdles you have to jump through to get a loan application. Your case is special and unique, and chasing the lowest rates won’t do much for you. So, you need to find a bank that caters to your special circumstances. We all love a good deal but, if you don’t fit the criteria offering the cheapest rates, what can you do?
2. Ready Your Accounts by Planning in Advance
Right now, businesses are out to ensure their survival, and mortgage providers seek viable candidates that show the promise of commitment to their payment plans.
Typically, banks and building societies require freelancers to provide at least two years of trading and tax documents. Ensure that your tax payments and tax returns are both submitted on time. If you see yourself owning a property soon, you have to get organized.
3. Boost Your Credit File
When applying for a mortgage, or any other long-term loan for that matter, having the best possible credit score is a necessity.
One tip that most people don’t know is the importance of being on the Electoral Role wherever you’re residing. Registering to vote is extremely important. Additionally, make sure that your bills and statement have your current address.
One thing you should have gathered from the above tips is that you’ll have to put in a significant amount of work, which can be quite daunting if you’re doing it all yourself. Take a moment to consider what your time is worth. Perhaps you could transfer some of that burden and strain to a professional mortgage advisor.