Self Certification or Self-Employed?

Can’t prove your income but need a mortgage?

Ask yourself do you fall into any of the following categories?

• Self employed and do not yet have accounts?
• Income made up of family tax credit, maintenance, or other income which cannot be used for a mortgage?
• Is a large proportion of your earnings made up of bonuses, cash or commission each month
• Need to remortgage or buy as a result of divorce or separation but can’t borrow enough?

Well traditionally you would find that most lenders would not be able to give you a mortgage or indeed if they did it would not be for the amount that you would hope for and may be subject to restrictions in terms of rates and flexibility.

Self certified mortgage...

This is where a self certified mortgage maybe the right option for you. Their popularity has risen sharply over the last few years and for good reason.

In order to apply for a self certified mortgage you will need to provide a 10% deposit or have more than 10% equity in your home. In most cases lenders will not ask for income confirmation either - which can make it particularly suitable for self employed applicants who can often struggle to prove consistent earnings.

Apart from house purchase these schemes can be used to free up equity for many purposes such as:

• Capital raising for business
• Buying a second home
• Debt consolidation to reduce monthly outgoings
• Divorce settlement or separation

In the past self certified mortgages were often more expensive than the conventional sort and were not available with well known companies. Recently however they have found their way into the high street with lenders offering the same rates and terms that are available to conventional mainstream customers so now you don’t have to pay a premium for going down this route!

What should I do now?

If you advice on a suitable self certification mortgage then you need to talk to us first. We conduct very large amounts of self certified business for clients in many different circumstances. The volume we do, is no doubt helped by the fact that property prices have risen sharply in the last 3-4 years and that means homeowners can take advantage of the rising equity available in their homes.

So for a suitable self certified solution call us now on 0800 3289339 and see what options we can give you now!