Self Certified Mortgage

Less and less people appear to be taking out a self-certified mortgage, from here on referred to as a self-cert mortgage, so that may be why it is one of the less familiar types of mortgage out there. Indeed many people say that not only do they not know what a self cert mortgage is, but that they have never actually heard of this before!

So what is a self cert mortgage? Well, it is one that is aimed at people who may find it hard to get a 'standard' mortgage from a general high street lender and this is principally for one reason: finding it difficult to prove their income. Now, those who are in work for an employer will have their P60 and their pay statements to show what they earn. However, for those who are self employed it is usually a lot harder, particularly if income comes and goes and so there is no such thing as a regular salary and a set annual income.

Therefore a self cert mortgage is particularly useful for self employed people and is who it is most likely to be of interest finding out about, as being self employed means that many traditional lenders will see you as a higher risk person than someone who is employed - despite the fact there are millions of self employed people and in the modern era there is no such thing as a safe job so anyone who is employed is perhaps just as much at risk of being made redundant.

If you have the ability to show clearly your income for the last three years or so as a self employed person and all the relevant accounts etc then you should probably be able to get a standard mortgage. But if not, then it could be worth considering a self cert mortgage which are usually available through a broker. These are specifically for those who can't prove their income.

So how does it work? Well, you say what your income is, some checks are run, and assuming that credit check is OK, then you get the money in a nutshell. The process may be more or less complicated depending on the individual broker and circumstances: many will still want to see bank account statements and maybe also various references that will give them confidence that you are solvent and able to pay your way and have been able to meet your bills without problem in the past.

The key thing to remember is that you must be honest in what you assess your income to be - it is against the law to inflate your income, and it is also stupid as if you borrow more than you can afford then you will be shooting yourself in the foot in the long run as you struggle to keep up with payments!

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