Self Certification Mortgage
Self Certification mortgages (or self-cert mortgages) were introduced a decade ago. They are designed for people who have a reasonable deposit but are unable to show their true earnings.
As more and more people derive income from a greater variety of sources, so self-certification mortgages become more common.
If you are a freelance worker or run your own business, you may not have comprehensive records of your income, even though banks usually need these kinds of documents to calculate how much you can borrow for your mortgage. Thus finding a normal type of mortgage can be difficult and this is where self cert mortgages come in. If you are a key worker, such as a nurse, you can apply for one the plans that the government has launched.
In the absence of information, you as a prospective homebuyer have to declare your entire income to a mortgage lender, who will subsequently then check your credit history. Once this is done you should be able to apply for a self certification mortgage.
If the above sounds familiar/useful, then mortgage250 can introduce you to an FSA regulated UK self cert mortgage specialists to help you find the right deal.
You will be able to talk through the process of applying for a self certification mortgage and get impartial advice before applying for a mortgage. Your enquiry will be dealt with by a qualified mortgage advisor who is experienced in dealing with self cert applications.
Any bank offers self cert mortgages but probably HSBC mortgages have the best deals in this type mortgage.
If the self certification mortgage is not for you, have a look at our Mortgage Types Guide.
Latest News on self certification mortgages:
Advantage has relaunched its mortgages with new lower tracker interest rates.
Advantage made the changes because of research showing that consumers have negative feelings towards traditional non-conforming categories such as heavy adverse.
The self-certification mortgages range now has a 2-year tracker rate and 2-year fixed rate mortgage, with all rates being linked to the Bank of England Base Rate rather than LIBOR.
Their self-certification range is available for both employed and self-employed borrowers. The mortgage is based on affordability, rather than income multiples, and this allows borrowers the option of borrowing more than their salaries would normally allow.
The ADV non-conforming mortgage range has added 1 and 2-year tracker rates along with 2 and 3-year fixed rates.
Keith Dearling, the managing director of advantage, said: “We continuously review our product ranges and look at how market conditions are affecting brokers, packager, networks and customers and how we can enhance our offering to meet changing needs.
“At the present time there is a high demand for alternatives to 2 and 3 year fixed rates, as these are proving too expensive for customers”, he added.
New guides:
- Looking to remortgage?: a self cert mortgage is compatible with a remortgage.
- Mortgage types: buy to let, cashback, offset, tracker…
- Interest Rates
- Estate Agents
- Negative Equity
- Repayment Types
- Stamp Duty
- Home surveys and what they involve
- House surveys-Home information packs
