If you are self employed, or employed on a fluctuating income, you may find it hard to prove that your earnings are enough to make the payments on the mortgage you want. This may be because you've not been trading long enough, you rely on a more than one job, or on bonuses, commission or overtime for a large part of your total income. Self certification mortgages are designed to cater for this situation.
How a self certification mortgage works
In certain circumstances, rather than requiring proof of income (normally by way of three years audited accounts), a lender may rely on your own assessment of income, which you state in a signed declaration on the mortgage application form. This is known as 'self certification'.
Self certification mortgages - what's on offer
An increasing number of both specialist and mainstream lenders are now prepared to offer innovative solutions like self-certification to people who cannot prove their income by normal means. To reflect the higher risk involved in this type of lending, lenders have traditionally charged a slightly higher rate of interest for self certification mortgages than for loans where income is confirmed. To some extent the potential risks for the lender is offset by limiting self certification loans to a certain percentage of the property's value. However, competition in this market is fierce, and it is possible to find some very attractive mortgage products, often with the interest rate linked to the percentage borrowing required - so the lower the 'loan to value' ratio, the lower the interest rate charged.
Mortgage Dimensions makes finding the right self certification mortgage easy for you...With access to all the high street lenders plus a wide range of specialist lenders offering self certification mortgages, it makes sense to take advantage of our expertise and inside knowledge of the mortgage market. Not only can we search the UK market to recommend the self certification mortgage most appropriate to your needs, but we'll look after your application throughout the whole process, from beginning to end, ensuring that everything goes smoothly, with the minimum of fuss and no delay....and there's no fee for out service!
Enquire online or call to talk to us on
0845 021 0212
The overall cost for comparison is 6.2% APR. The actual rate will depend on your circumstances. Please ask for a personalised illustration.
