Self Certified Mortgages
Self certification of income mortgages has undergone a couple of name changes in recent years and some clients’ may remember non-status or no proof of income mortgage, which is basically the same product.
If you are self employed, employed, contract worker or freelance and unable to prove your true level of income, self certification of income is an attractive option for you.
Self certification of income may also be appropriate where clients’ have more than one source of income which could be from part time employment in addition to their main employment.
With self certification of income, depending upon the lender, you would normally be able to self certify your income up to 90% Finance to value depending upon market conditions at that time. What clients’ should understand is that by self certifying income you are declaring what you actually earn, but you are not asked to prove this. Where clients’ may have some adverse credit or previous mortgage arrears, this will have a major impact upon the terms and conditions available.
What is a self certification mortgage?
Self certification mortgages have been available for many years. They were originally introduced to help the self employed clients’ who did not have accounts available to demonstrate their true income. Self certification mortgages have evolved over the last 10 years and now are available to many other workers who would have previously found it very difficult to arrange a mortgage.
We are now able to accept, employed, self employed, contract workers, agency workers, freelance and clients who have income from more than one source. Provided that the lender is happy with the level of income declared and is comfortable that this income is a true reflection of your circumstances, you would normally be accepted, subject to credit score and credit checks proving satisfactory.
In recent times lenders have also moved away from standard income multiples to affordability calculations which allow them to be far more flexible and understanding of your position.
For a self certification of income mortgage we would normally expect the lender to have a minimum requirement for a 10% deposit. This will of course depend upon credit score and the current position of the financial markets when lenders may increase or decrease the Finance to value.
