Self Certification
What are Self-Cert Mortgages?
Self-certification mortgages are vital for a growing number of people in the UK.
Thousands of self-employed people find it difficult to provide comprehensive proof of income, and thousands more who rely heavily on bonuses and commission, for example, find themselves in the same predicament.
These are the sorts of people that Self-cert mortgages are designed to help.
Self-Certification Mortgages enable you to declare your income on the mortgage application and the lender makes no, or only limited, checks to confirm your income.
For example, someone earning commission in a sales job may earn monthly bonuses that vary. In the past lenders would have ignored this income and thus reducing the loan amount. Now they will let the individual declare this income and take it into account when calculating the loan amount.
Some Key Points:
- As lenders allow you to self-cert your income the interest rates tend to be marginally higher than full status mortgages.
- You can borrow up to 90% of your property value – the lower the % the better the rate you can obtain.
- Clients must declare honest and clear information about their income.