Self Certification Mortgage
Friday, June 20th, 2008 by Decor Guru Subscribe To Our Feed
SELF CERTIFICTION Remortgages
The UK self certification mortgage market has grown over the years and is now available to the employed and self employed. The amount you can borrow is calculated on you and your partner’s annual income. Mortgage lenders will also take into account any bonuses, commissions, second income, pension etc. This all adds up to the total amount you will be able to borrow. This is especially important in today’s expensive property market. A self certification mortgage poses a bigger risk to lenders and this is reflected in their pricing.
Self Certification morgage are particularly attractive to those borrowers who have access to a reasonable amount of deposit funds, but for whatever reason, are unable to confirm the full amount of their earnings. Those in this position include freelance workers, those who operate their own business and others who classify themselves self-employed. Should you be unable to prove your income, then a self certified mortgage may well be the answer. For those that cannot prove their income in a traditional way because they are temps, freelancers or self-employed etc, then self-certified mortgages can offer a solution. Please take note, self-certified mortgages are not designed as a means to be dishonest or inflate income on an application form in order to achieve a larger loan.
The interest rate you pay will be slightly higher than normal, but the rates are still competitive.
The larger the deposit you are able to put down, the lower rate you will pay.
It is the self employed who benefit most from a self certified mortgages, as their earnings are irregular and they do not receive a set income each month so do not meet normal lending criteria.If you’re one of the millions of self employed people in the UK, or have working styles which differ from the norm, you’ll benefit from using the services of an independent firm of mortgage brokers who specialize in arranging self certification mortgages & remortgages for the self employed, company directors, contractors and other people who find it hard to prove their income.
People within these categories often may not be able to detail exact financial circumstances at any given time. This makes it difficult for banks and mortgage lending organizations who usually insist on verifiable and well-documented evidence on all of the borrower’s earnings before considering any type of loan.
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