Self Certified Mortgages
Self certification (also know as self certified) mortgages are ideal for various applicants whose income is not easily proveable.
If you are self employed, a company CEO or director, contract worker or freelancer it is likely that your income is reduced to a minimal amount for tax purposes, you may also be unable to provide at least three years trading accounts. As a consequence it can be difficult to secure a self certified mortgage.
In short, if you know you can pay a mortgage, but have difficulty proving it in the usual way, we can help through a type mortgage which does not require evidence or proof of income.
If a flexible mortgage is quite important to you, payments can be tailored to suit your changing circumstances. So you can increase payments or pay lump sums when cash flow is good and reduce payments or take payment breaks as and when you need to.
So in short what is a self certification mortgage?
Self certification mortgages have been available for the last 10 years. They were introduced to help uk home buyers who had funds available for a deposit on a property but were unable to demonstrate their income, often because they are either self employed or working as a contractor.
High Street lenders and specialist lenders use salaries declared on P60s and wage slips to determine how much they can 'safely' lend. If you do not meet their criteria of requesting a mortgage that is no more than 3 or 4 times your proven salary you will probably be declined.
If you are self employed or a contractor caught out by High Street lenders' requirements self certification mortgages may offer a practical, easy solution with a minimal amount of paperwork.
In short self certification means that you do not have to prove your earnings. We at A Mortgage 4 You can help identify the best lender to meet your self certified mortgage needs.
Self certification mortgages are often capped at 75% of the property value but using a flexible approach we can arrange levels of up to 85%.
Self Certification of income is a relatively new mortgage type that has developed out of a desire on the side of the financial industry to help those self employed tradesmen, entrepreneurs and company owners who would otherwise be frozen out of the house buying process.
Conventional mortgage applications ask for a never ending list of paperwork to prove your income and this has often proved very problematic for small sized business owners and the self employed who traditionally will take income in a variety of different ways.
In return for what is a minimum 10%-15% deposit, self certified mortgage lenders will, in most cases, waive the requirement for supporting income documentation. In nearly all cases the providers of self certified mortgages are subsidiaries of the big High Street lenders and so you need not be concerned that you are borrowing from anything other than a mainstream financial institution.
