Self-employed borrowers could save on their mortgage

11 March 2005
Independent mortgage broker Charcol has issued a warning to self-employed homeowners that they could be paying over the odds for their mortgage - and there are ways to ensure they get a good deal.

According to Charcol, those self-employed mortgage holders who don't shop around for the best deal could find themselves paying almost two per cent more than they need to.

Charcol cites advances in the underwriting process for the self-employed and the greater profusion of online applications as factors in mortgage developments that mean self-employed borrowers can also take advantage of market-leading deals.

"The industry has undergone a period of very significant development over the last few years, mainly concerning the ways in which mortgage applications are underwritten, and many self-employed borrowers can now reap these benefits," explains Ray Boulger, senior technical manager at Charcol.

"Self-employed borrowers should carefully review their current mortgage, as they have a much greater choice in the length, type and cost of their mortgage, and will often no longer effectively be penalised for their self-employed status."

Mr Boulger adds that a flexible mortgage could be the answer for some, whilst others could benefit from an offset mortgage, letting the extra convenience justify the slightly higher rates.

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