If you would like more info on self certification mortgages call Paul Burrows on 0845 130 0009

Self certification mortgages

How does a self certification mortgage work?
A lender will usually need proof of your income, but sometimes, they will rely on your own assessment of income (‘self certification’). Self-certified mortgages were designed to cater for people who are self-employed and have difficulty in showing that their earnings are enough to make the payments on the mortgage they are applying for. This could be because they have not been trading for long enough, they have more than one job, or they rely on bonuses for a large part of their total pay.

Don’t let anyone persuade you to overstate your income in order to get a very large loan. If you lie about your income, you could end up with a loan you can’t afford. You’ll also be committing a fraud and could get a criminal record.

Q..Why would you consider a self certification mortgage?
A..A Self Certification mortgages allows you to borrow potentially larger amounts than a normal full status mortgage, as no proof of income is required. You just need to sign a declaration stating that the loan repayments are affordable.

Q. How is my income verified?
A. Some lenders may need to write to your accountant to confirm that you are currently trading, however the underwriting of your loan should normally not trigger an income check.

Q..Will I pay a higher interest rate?
A. Due to the possible increased risk associated with lending on a self-certification basis, some mortgage lenders have traditionally charged higher interest rates than those available through standard channels.

If you would like more info on self certification mortgages call Paul Burrows on 0845 130 0009

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