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Mortgages for Escorts
Preliminaries
Many escorts do not realise that they are as entitled to apply for a
mortgage as any-one else. Most escorts are classified for tax purposes
as self-employed. So, if you are already paying tax, or are about to
start paying tax, perhaps you would like to think about getting a
mortgage, to buy a property and invest in your future.
Really the rules about mortgages for escorts are no different than for
any other self-employed people, or shouldn’t be. I have worked as an
escort and as a mortgage broker and I got my first mortgage when I was
an escort.
I did not declare that I was an escort. I was paying tax as a
complimentary therapist. So to be honest I do not really know how
mortgage providers will react if you say you are working as an escort. I
shouldn’t think they will be moralistic but they may view you as more of
a financial risk. (You know they may think you are only going to work
for a year or so etc. so may not be a good risk for a 25 years
mortgage.) So the decision as to whether you tell them you are an escort
or not is yours alone. The only thing I would add is if you are not
going to tell them you are an escort please make sure that the job you
say you do is the same as the one you pay tax under!
Usually I would not advise anyone to have a mortgage that is more than
three times their annual income. So for example, if on average you earn
say £35,000 a year your maximum mortgage should be no more that
£105,000.
Remember also to make provisions if you suddenly cannot carry on
working. I would recommend that you look at private Unemployment
Insurance to cover your mortgage if you become ill etc. (Your broker
should be able to advise on this). And also I would recommend that you
look at rental properties similar to the property you are looking to buy
and see if, in an emergency, the local rent charged could cover your
mortgage payments. (Of course you may have to live elsewhere for a
while, but this would be the worst case scenario so you don’t lose your
property)
Many lenders may allow you to do this if you seek their permission but I
would advise that you get legal advice before you do because some
clauses in the lease, (if the property is leasehold), forbid the renting
out of the property.
PLEASE NOTE: Many mortgages are not covered by payments from the Income
Support if you become ill or get pregnant. Seek advice from the Citizens
Advice Bureau before you buy a property if you think this may be likely
to happen to you.
(There are links at the end of this article to websites that can help
you if you get into difficulties.)
So what mortgages are available?
Mortgages Available for the Self-Employed. A Brief Guide:
Non-Status Mortgages (also called Self-Certification Mortgages)
Non status is a term generally used by mortgage and remortgage lenders
when your employment or self employment income is not easily proved or
comes from a variety of sources. (For example you may have a day job and
work as an escort in the evening.)Many high street mortgage lenders take
a cautious view of the self employed or other people who have difficulty
proving their income. And also of people who earn their income in a cash
business such as many escorts do. If you have difficulty proving your
income, for example you are unable to provide two or three years’
accounts, or you do not have accounts, (because you are just starting
out in the escort business for example), then a non status mortgage) may
be the way forward.
With a self certified mortgage you do not have to provide accounts,
payslips or other proof of income, but instead you simply certify that
you have sufficient income to service the repayments. You could qualify
for up to 95% of the purchase price.
This type of mortgage could be particularly useful if you have just
started escorting and therefore have no accounts, but already have a
substantial cash sum to put down as a deposit on a property. (Bear in
mind though that you will have to start paying tax and that you may need
to justify to the Inland Revenue, (the “tax man”), how your deposit
originated e.g. was it a gift or left in a will etc)Non status mortgages
are offered by UK mortgage lenders without the need to provide proof of
income or previous mortgage history. You simply have to make a
declaration that you can afford to meet the monthly payment on the
amount you wish to borrow.
Even if you have adverse credit or previous arrears you could still be
considered for this type of mortgage.
One thing I would add about this type of mortgage is that the interest
is usually higher than that of high street mortgage lenders because the
lender in this case is taking more risk.
Exclusive Deals
Many of the non status mortgage lenders only accept business through
mortgage brokers and many of the non status mortgage deals are not
available in the high street.
Self - Employed Mortgages
If you are able to provide two to three years of accounts you can get an
even better deal on a self – employed mortgage. This will be at a better
rate than a non-status mortgage.
Some high street lenders will consider the self – employed for this type
of mortgage. However three years accounts will be better and your past
mortgage/credit history will still be taken into account.
Some of the better deals, which may be more sympathetic to those with
accounts but still with bad or no mortgage/credit history may be found
with independent mortgage brokers.
For both types of mortgages flexible deals may be available. e.g.:-
Flexible Mortgages
Innovative mortgage solutions are available which present you with a
more flexible way to pay your mortgage when you are self employed. If a
flexible mortgage is important to you, payments can be tailored to meet
your changing circumstances. So you can increase payments or pay lump
sums when cash flow is good and reduce payments or take payment holidays
when you need to.
Legal Advice
I would suggest when buying a property that you only use a qualified
solicitor that is experienced in helping people buy properties, (also
called conveyancing) to help you. Another type of person who is
qualified to do this is called a conveyancer.
And although you can cover the legal aspects of buying a property
yourself and there are books on the market that suggest this is easy, I
would strongly recommend against this.
Links
Advice for Getting a Mortgage:-
UK Mortgages Brokers Directory
http://www.mortgages.co.uk/brokers/
UK Licensed Conveyancers Directory
http://www.theclc.gov.uk/directory.asp
If you need help because you have been mistreated by a mortgage broker:-
The National Association of Mortgage Victims
http://www.namv.org.uk/
The UK Financial Ombudsman
http://www.financial-ombudsman.org.uk/
If you have problems in paying for a mortgage:-
General Advice for Mortgages Arrears or Difficulties in Paying
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261
Income Support and Mortgages Repayments
http://scotland.shelter.org.uk/advice/advice-3746.cfm
Citizens Advice Bureau
http://www.citizensadvice.org.uk/
General Help for the Self – Employed
http://www.fsb.org.uk/
Good Luck!
Legal Disclaimer
The forgoing advice is given in good faith but should not be considered
a substitute for appropriate professional or legal advice. Always
consult a qualified solicitor and a qualified financial adviser before
taking out a mortgage or buying a property.
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