A UK self certification mortgage (self cert) is a mortgage that allows you to declare how much money you earn from your self employment/employment. The self certification mortgage was first introduced around about 10 years ago. UK Self certification mortgages were introduced in order to assist small businesses and firms acquire a mortgage.  A UK self certification mortgage is not only for self employed persons but also for others that earn money irregularly. People who are in seasonal employment, i.e. (Christmas workers) or earn on a commission basis, such as sales reps will be able to benefit fully from a UK self certification mortgage.

One of the main ways a self certification mortgage differs from other mortgage types is that you may be asked to put down a higher deposit. You may also end up paying a higher interest rate on your mortgage Finance. The minimum deposit usually begins at 5%-10% of the properties value. When first applying for a self certification mortgage you may be asked to provide the lender bank statements, this will give the lender an insight into your transactions, how much you have coming in, and your outgoings. The lender will make use of your bank statements to verify your gross income for the year.

If you are taking a UK self certification mortgage on a second property you may be asked to provide mortgage statements from the mortgage on your primary property.

When it comes to a UK self certification mortgage you may or may not be asked for proof of how much you earn, this depends on the lender and your circumstances, but remember, it is mandatory that you do not lie about your earnings or how much you make from your self employment, and avoid exageration for your own benefit, lying to achieve the mortgage may land you in serious trouble with the financial services authority, also exageration will leave you struggling to afford the mortgage repayments, at worst you could default and suffer reppossession.

With UK self certification mortgages there are a variety of interest rates available. UK self certification mortgages carry a higher rate of interest then that of standard mortgage rates, again this is based on the risk of lending without added security or verification of a fixed wage from standard employment.

Before proceeding with a UK self certification mortgage it is advisable to give us a call to discuss your borrowing needs, it is important that you seek the advice of an independant financial adviser before making any decisions.

UK Self Certification Mortgages Are Suitable For:

    * The self employed

    * Contractors

    * Freelancers

    * Company Directors

    * Commision Based Workers

    * Workers with multiple income sources

As a broker we have access to the entire mortgage market within the UK,  we can source you a lender to match your circumstances

Mortgages