Being self employed can cause a lot of problems when trying to secure a loan. Many lenders prefer to have a lot of documentation and proof of income. Self employment is seen as risky business because the income is not guaranteed and is not often steady.
Lenders like to deal with people who have a steady income that is not likely to change. For the self employed, though, there is a special loan, called a self certification loan.
A self cert loan is ideal for the self employed. A self cert loan requires no documentation or limited documentation of income. Instead the borrower declares their income. Some lenders will want to see bank statements so they can get an idea of the borrowers income.
Like most loans that are considered risky, a self certification loan is going to be more expensive then a typical loan. The lender is going to charge higher interest and fees.
In order to help lower costs, bringing in some documentation can help the borrower. They may wish to provide any proof of their income for a one year period or longer, if they have it.
In general, lenders want proof of three years of income fro a self employed person. This may be...
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