What are the Different Employment Mortgages?

Employment mortgages are available to people whose work is not like the normal people have. These mortgages allow workers who cannot qualify for conventional loans borrow money that they can use to buy a house.

There are so many types of employments right now. With the ever-changing landscape of the workforce, you can no longer expect to see people who have 9 to 5 jobs. Today, there’s so much more.

There are different types of workers and they do not necessarily need to be tied up to a certain company. Some prefer to work for themselves and, surprisingly, make more money than they would if they stayed with a company.

Casual workers, contractors, freelancers, sub-contractors, and others are currently enjoying not just great pay but flexibility. For a lot of people, it is very important that they still get the time to do things that are not work-related. They want to be able to set aside some time to spend with family or do things that interest them.

There are many benefits to taking control over your work. By being able to choose the time you work or the projects you want to work on, you allow yourself to make a good living by doing something that is close to your interests.

But there could be some downsides. One of them is the difficulty in obtaining a conventional loan.

If you are thinking of buying a house, you might find it challenging to get approved for a loan because of the nature your of work. Generally, lenders are strict when approving loans. They look for someone who can prove the ability to repay the loan and minimize the chances of defaulting on the loans.

They want someone who can assure them that they will be able to meet the monthly mortgage repayments. It’s something they take seriously because for each borrower that fails to make repayments, lenders incur losses. This is why they screen loan applications carefully—to make sure that only those who meet the requirements are granted loans.

Ideal candidates for loans are those who have regular income. That means you need to ensure you can provide documents that would prove you have a job that will provide you with the money to pay the loan.

Lenders want to make sure that you have a regular (or permanent) job. Why? That just goes to show that you will have a source of income for the coming years, which also means you will be able to repay the loan.

Most people get refused loans because they cannot prove they have the financial ability to pay back the loan. But sometimes, there are people who make enough, sometimes a lot, of money that makes them able to afford a house. The only problem is they do not have the typical 9 to 5 job, which is what’s considered a stable job by most people.

These people with unconventional, or unusual, employment will often find it hard to get approved for loans because they will not be able to submit documents like pay slips or tax returns to prove that their job will allow them to earn enough to repay the loan.

Contractors, freelancers, and casual workers are examples of this. They may not have a job that requires them to come to work every day, but these people can make enough money, sometimes even more than people with regular jobs, to pay for a house.

But because they cannot provide the necessary documents, lenders will think of them as high risk and, therefore, deny their application. But not all lenders are this strict. There are some who will offer people with unusual jobs mortgages no matter what their employment is.

The following are examples of employment mortgages:

Casual employment mortgage

Bonus income mortgage

Unusual employment mortgage

Mortgage without pay slips

These types of mortgages will offer specific employees the chance to buy a house despite not having all the requirements conventional lenders ask for. With the help of a good mortgage broker, you should be able to find a lender that will let you borrow as much as 90% of the property value.

Get to Know How You Can Benefit from Probation Mortgages

What are probation mortgages and how can you benefit from them?

These are one of the many types of mortgages that are awarded to individuals of different circumstances. These can be actually considered as one of the lifesavers for people who want to buy a home but would have some difficulties trying to prove to lenders that they have the ability to pay off their loan.

Lending companies are very strict with their loan approval methods

It’s not surprising to see a lot of lenders implementing stricter guidelines when approving loan applications. This is because no lenders want to suffer losses when borrowers default on their loans.

Aside from that, most of the world economy is still feeling the effects of the housing problem that affected most of the states in the United States several years ago. Due to hundreds of people who defaulted on their mortgages, foreclosures were rampant.

Thousands of people who were not able to pay off their loans lost their homes. It’s something that has also affected other countries. And because of that, lenders are now more careful with who they grant loans to.

They want to make sure that only those who really have the financial ability to pay off a mortgage get a loan.

But not everyone can meet lenders’ requirements

This is one very common problem. Not everyone is going to be able to meet the requirements set forth by lending companies. This is one thing that will keep a lot of people from getting the home they want.

Some people have poor credit scores while others don’t have a permanent job. The latter is what most people are having problems with. This does not necessarily mean that these people do not have jobs; it’s just that lenders are looking for something very specific when it comes to employment records.

They want to see that a borrower has a permanent employment. They want someone who has a stable job simply because a person with permanent employment is most likely to keep up with mortgage payments than someone who is on a contractual job or on probation.

But that’s all about to change.

It does not matter if you only have a contractual job or you are on probation because there is an increasing number of lenders today that are willing to give people who would have no shot in getting approved for standard loans a chance to pay for their house.

Probation mortgages are perfect examples of this.

What are probation mortgages and how are they different from other loans?

These are awarded to people who are on probation. People who are still not permanently employed and haven’t signed a contract are considered on probation. This status can last between 3 and 12 months.

That means there is no certainty to a worker’s fate, as it will depend on what the company would think of his or her performance.

Being under probation would, under normal circumstances, mean that the person would not be able to take out any mortgage loan, even a cheap mortgage loan. It would take that person a few more months before he can apply for a mortgage.

But with a probation mortgage, it is possible for someone whose employment is still in limbo to take out a loan. This is different from other mortgage loan types simply because it does not require one to be in a job for a long time.

Even if you were just on your first day of probation, you’d still be able to be granted a loan, as long as you meet the requirements.

To be in a stronger position to get approved for a loan, you have to make sure that you are still in the same industry. Your previous and current jobs should be similar. You also need to have experience in the job and your probationary period is not longer than a year.

There are different lenders that can help you take out probation mortgages. Find the right one and you can be assured that you will be able to buy a home without experiencing a lot of difficulties.