Providing detailed evidence of your earnings is key

Mortgages for the self-employed are hugely important. Approximately 4.2 million people in the UK work for themselves, according to the latest self-employment figures from Statista. That means just over 10% of the country’s 41.59 million working-age adults (defined as those aged 16-64) are self-employed. And many will want to use some of their earnings to buy their own home.

Guarantor mortgages can help first-time home buyers get on the property ladder.

A guarantor is defined by the financial guide Investopedia as ‘an individual who promises to pay a borrower’s debt in the event that the borrower defaults on their loan obligation’. Mortgages are large, secured loans, and some require guarantors. This is often the case with products aimed at first-time buyers, whose financial position may be strengthened by the presence of a guarantor, as we’ll explain.

This type of secured loan is popular in the buy-to-let sector.

If you’re looking for information about interest-only mortgages and other types of mortgage, you’ll come across the term mortgage rates, which refers to the interest rates levied on mortgage products. For example, the Independent newspaper recently reported that average fixed mortgage rates are falling. That’s potentially very good news for property buyers looking for fixed-rate mortgage products, as lower rates mean there’ll be less interest to pay.

Your step-by-step guide to switching to a better mortgage deal

Remortgaging your home means exchanging your existing mortgage product for a different one, usually from a different lender. You’re moving your mortgage but staying in the same property.

Remortgaging is different to arranging a homeowner loan, because the latter involves keeping your existing mortgage agreement and taking out an additional, entirely separate secured loan.

There’s an attractive alternative to unsecured borrowing, and it could be right for you.

If you need to raise considerable funds, taking out a loan may well be an option you’re considering. A homeowner loan or second charge is a form of secured borrowing. It involves using your home as security to borrow a lump sum. UK mortgages are secured loans too, but a homeowner loan isn’t linked to your mortgage deal. It’s a separate agreement and doesn’t take precedence over your mortgage.

Have you considered using your home’s equity to access additional funds?

Over the past couple of years, the UK has seen a surge of interest in home improvement projects. The trend was initially driven by lockdown living: spending more time at home prompted people to enhance their properties. In 2020 alone, house-proud consumers spent £110 billion on home improvements – a year-on-year increase of almost 30%.

You can save time and money – and get the best deal – by consulting a broker.

Although it’s possible to approach mortgage lenders directly, people often find that challenging. ‘With so many companies and types of lenders to choose from, you might feel analysis paralysis,’ Investopedia remarks. You could end up overwhelmed and struggling to decide which mortgage is right for you. Fortunately, there’s a tried-and-tested alternative: consulting an independent mortgage broker. We’re the largest in Devon and have a team of expert mortgage advisors. We’ve been providing clear guidance about all aspects of mortgages for over 25 years.

Your home is your most valuable asset. If you’re approaching retirement or have already given up work, you may be wondering how to make some of the money locked up in it work for you. You’ve probably heard about equity release in relation to UK mortgages and property, but might not know exactly what this means or whether it’s likely to benefit you and your partner (if you have one) at this stage of your life. So let’s take a deep dive into equity release with lifetime mortgages to bring you up to speed.