Self Certified Mortgages
What is a self certified, non status or self certification mortgage?
All the above expressions refer to mortgages where the self certified mortgage lender does not ask for proof of income, on the basis that they accept that those applying for the mortgage find it difficult to prove their income in accordance with standard lending criteria.
If you are employed on a PAYE basis, and have no other forms of income, be it investment, self employed etc, then a self certified mortgage would not be appropriate as proof of your income is possible.
However there are many reasons why a self certified mortgage may be appropriate for the Employed, Self Employed, Freelance or other type of worker, some of which are listed below.
To find out is a self certified mortgage is applicable and to receive a self cert mortgage quote, simply complete the simple form that follows and a self certified mortgage adviser will contact you to discuss your options and confirm what self certification mortgage may be appropriate for you
Self Certified Mortgage Quotes
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Self Certification for the Employed
For those that are employed, Self certification mortgage may be appropriate where there are various sources of income which could include PAYE employment, investment income, income from a trust fund, or additional self employed income where the period of trading has not resulted in the first set of accounts being prepared. In these types of circumstances, payslips would not give a fair representation of total earnings and what would be affordable to borrow.
Another example where a self cert mortgage may be appropriate, would be an employed borrower that has a different monthly income, such as those in sales with salaries based on commission, and where monthly income can fluctuate widely, making prove of income to a mortgage lender extremely difficult.
Many mortgage lenders will only accept 50% of commission income, or work on an average over a number of years, which may not reflect the true current affordability of the borrower. Self certified mortgages enable the borrower to self certify their income and the affordability of the mortgage, and so if you have different incomes or find it hard to prove your income, complete the form above to receive contact from a self cert mortgage adviser, who will be able to discuss the self certification mortgage options that may be appropriate.
Self Certified Mortgages for the Self Employed
Self Cert mortgages are most appropriate for the self employed, or those with different forms of income. There are a multitude of reasons why a self employed person may consider a self certified mortgage, but one of the most common reasons follows.
Business owners that have a full set of accounts for three years or more will probably be able to apply for a full status mortgage, as proof of income is available. However, for some self employed who own their own business, the accounts do not reflect the true income or affordability available. One reason could be that income is minimised to mitigate tax in full accordance with accepted accounting practice. This could show net income to be less that it actually is and therefore would make it difficult to get a traditional mortgage. A Self Cert self employed mortgage could, in that case, be more suitable.
Self Certified mortgages may also be applicable to contract workers, or those who work on medium to long-term contracts before moving on to a new contract with a new company.
Self Certified Mortgages