Self certification mortgages
Self cert mortgages, also known as 'self declaration of
income' or 'self certified' mortgages, have shot to popularity
thanks largely to changing work practices in the last couple of
decades that have left a large number of people on short term or
part time contracts, or dependent on bonuses for a sizeable
portion of their income.
Self cert mortgages are for people whose income is difficult
to assess using the standard methods adopted by most
conventional mortgage lenders.
Bonuses, commission and seasonal work can cause income to
vary over time or be difficult to guarantee and this may not be
considered acceptable in order to get a mainstream loan. Many
customers who go on to be excellent mortgage customers with
specialist lenders routinely fail credit scoring processes with
mainstream lenders. While most self cert mortgages are also
available to the self employed, they are not exclusive to them
and some of the following groups also opt for this type of
product:
- Unsalaried company directors
- Contract workers (increasingly common in technology based
industries)
- Commission based workers (often in sales, recruitment etc)
- People with seasonal earnings
- Those with more than one income
- City workers or others who receive a high annual bonus
- Employees from other sectors such as the airline industry,
who have complicated systems of bonuses and allowances that
make conventional documented proof of income problematic.
- Borrowers on a low wage who have an inheritance fund or
other family income
- Freelance workers
Self certification is the process by which the amount that a
customer borrows is based on what they claim is their income as
stated in a signed declaration in the application form, but
where they don't have to prove it on the basis of their
accounts.
Best Buy Mortgages can
search the entire UK Self Cert Mortgage market for you and
find you the best deals available for your circumstances -
Get your free no obligation
self cert quote today
A better choice of 'Self Cert Mortgages'
There are dozens of mortgage lenders offering thousands of
mortgage products. Even so, if you are one of the UK's 3.3
million self employed, you may still have a problem finding a
suitable mortgage on the high street. Mainstream banks and
building societies will not necessarily offer the self employed
borrower the best deal - if they offer anything at all. They
prefer to cater for the needs of the majority who just happen to
be in standard full time employment.
There is a sizeable number of workers either self employed or
currently working on a short term contract. Whilst they are
financially sound it is often difficult for these borrowers to
prove a level of income to satisfy a mortgage lender. A handful
of mortgage lenders have recognised this and look to welcome
customers in these situations. These are the specialist lenders
who understand the needs of the self employed borrower and
continually look to improve the terms and features of their
mortgage products to meet the needs of the market.
For example, whilst a mainstream lender will ask for up to three
years audited accounts from a Chartered or Certified Accountant
before considering a mortgage for the self employed, the
specialist lender will be far more accommodating. Specialist
lenders look to provide innovative solutions to individuals,
appreciating that different working patterns require a more
flexible approach.
It is with this in mind that some lenders offer flexible
mortgages to take into account fluctuations in income from self
employment allowing the borrower to 'Self Declare' their
earnings without the need for audited accounts. However it is
not only the self employed who can benefit from this type of
mortgage. Employed customers who do not wish to prove their
earnings by means of payslips or a P60 can take advantage of a
'Self Cert' mortgage. Click here to see a selection of
self cert mortgage rates.
However, do not let anyone persuade you to say that your
income is higher than it is to get a bigger mortgage. 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.
Lenders will perform a reality check to determine whether the
income you state is realistic - for example a part time cleaner
stating £100,000pa will be challenged and proof of income
probably requested. Creditors share information too, so if you
state your income as £20,000 to one creditor and then £50,000 to
another this may be picked up on.
So why use Best Buy Mortgages?
For most people using our services is a win-win situation.
Firstly, better deals are normally offered and secondly you've
got an expert looking after your interests. And remember a
mortgage for most people is the single most important financial
decision of their life.
Why not make your life a lot easier and ask
Best Buy Mortgages to help you find the best mortgage for your
needs. You will deal with a fully CeMAP qualified and FSA
regulated mortgage professional working for you to find the best
mortgage for your individual needs.
Your advisor will do their utmost to keep you fully informed
on progress and we also unconditionally offer the following
guarantees:
- You are under no obligation whatsoever
- No salesmen will call at your home
- You can cancel at any time up to completion
- If you cancel, there are no costs or penalties
How to get your free mortgage quote from Best Buy Mortgages
Compare the entire UK mortgage market (over 30,000 mortgage products
from more than 200 mortgage lenders) using our Mortgage Comparison
service or get professional help from a qualified independent
mortgage advisor and see how much you could save on your
mortgage payments. There's no obligation, just plain good
advice.
It will only take a few minutes of your time today but
could save you thousands of pounds in interest payments and will
eliminate any worries you may have about getting the best mortgage deal
possible.
You just need to enter some basic information into our secure
online mortgage enquiry form and we will present
you with illustrations of the best mortgage deals we have available.
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