Flexible Mortgages for Self Employed Folks

Increasing numbers of people have now woken up to the possibilities of self-employment. Research suggests that the numbers of self-employed people have already begun to rise. Self-employment has many advantages such as flexible working hours, the option of taking on only as much work as one pleases, and the possibility of higher pay while working on one's own terms. Given these advantages, one need not be surprised that people have begun to look at self-employment as the answer to their career woes.

However, along with all the advantages that come with self-employment it has a set of disadvantages of its own. For starters, a self-employed person might have the disadvantage of an irregular income. There may be a windfall one month and next to nothing the next. It is not the most secure form of working. If one is self-employed one must not be oblivious to the problems that are inherent in working this way.

Again, it is one thing to tell people who are self-employed that they must be ready to cope with the insecurities of an irregular income. How about those who need payments from them? Take the instance of buying a house. If a person has a full-time job which pays a fixed salary at the end of the month, he should not have too much trouble in procuring that perfect home mortgage. However, when it comes to a person with an irregular income, lenders will be much less willing to take the risk of loaning him the amount. Moreover, it may not be possible for a person with an irregular income to not default on monthly installments on a mortgage throughout the year. That is the reason why all self-employed people are happy at the idea of a flexible mortgage.

Now, a flexible mortgage is specifically suited for people that are self-employed. On the negative side, these loans charge a considerably higher rate of interest. However, there are more advantages than disadvantages. A flexible mortgage does not require the borrower to shell out for the same monthly installment. The borrower is allowed to pay as much or as little as he likes depending on his monetary situation that month. Then, after having paid a certain amount of the borrowed amount, the borrower would also have the option of borrowing from the paid-up amount. This would lead to the mortgage period carrying on for a longer time, but it would lessen the financial burden from the mind of the self-employed borrower. For the self-employed person, property purchase has become simpler.

By : Ajeet Khurana