Mortgage Vendor

Many people struggle to understand the basic concept behind self certification mortgages. Here we cover principle information you will need to know.

With the number of different types of mortgages on the market increasing, studies suggest that buyers are struggling to get to grips with mortgages. In fact, many house buyers find the different mortgage possibilities perplexing. Below we provide the basic information you need to understand if you are interested in self certification mortgages.

The basics

First introduced over 10 years ago, self certification mortgages (Self Cert, Self Certified, Non Status) are specifically designed for people who find it difficult to prove their income in the traditional manner. This may come about because they are self-employed or possibly because they are paid on a fluctuating income possibly commission-based.

Advantages of a Self Certification Mortgage

A large portion of the mortgage market, which was not catered for previously, can now secure a specialist self cert mortgage which is designed to address their needs. One of the main benefits of income self certification mortgages is that the borrower need not provide payslips, three years of accounts or other standard mortgage lender required documentation to prove their income. The self certified mortgage has significant advantages for the self employed.

The Drawbacks

There are some drawbacks associated with self certified mortgage loans. Some borrowers find that although they have a large deposit, they are still required to provide some proof of income. Lenders almost certainly will perform credit check and may require business bank statements or references. As an existing home owner, you may be required to provide existing mortgage statements, and if you are currently in rented accommodation the lender will inevitably ask for a reference from your landlord. Although this may be frustrating for the self certification borrowers, it is to be expected when a large amount of money is being lent.

If you think that you may be in the ideal position to benefit from a self certification mortgage, you should speak to a professional mortgage adviser who will help you examine the many different options you have available to you and be in a position to advise you whether or not self certification mortgages are suitable for your individual circumstances.

Tags:Self Cert Mortgages Explained

Tags: Self Certified Mortgages