Contractor Mortgages Choices for Contractors Since the Banning of Self Certification Mortgages
Since the FSA banning of “self-cert mortgages” along with increased tightening of lending policy for self-employed workers, many are left wondering what to do about getting a contractor mortgage.
Self-cert mortgages were often labelled by many as “liar loans” because they permitted self-employed borrowers to state their earnings without having to provide any proof of their their income. These types of schemes were aimed to help workers such as the self-employed, and contractors whose incomes were not regular, but they were seen by many as hugely controversial. Often, people would exaggerate their income in order to meet the affordability calculation required for their loan. The FSA put a stop to Self-Cert mortgages shortly after the financial crisis in 2008.
Many contractors at the time felt that they would be excluded from the property market as consequence of self-cert mortgages being removed.
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