MoneySavingCentre - Self Certification Mortgages & Remortgages
| It is not only borrowers who suffer from adverse credit who could find it difficult to obtain a mortgage, many borrowers are either self employed, directors of small companies or workers on short-term contracts who often have been declined due to an inability to prove their income. Also, in an age of changing employment status, many applicants may have a total income that is derived of a number of part time jobs. These applicants are "round pegs" who desperately need to find a "round hole". With these situations in mind many lenders now offer Self Certification Mortgages. Self certification offers an opportunity for borrowers to self declare their true income, without having to provide P60’s, wage slips or, in the case of the self employed, trading accounts. Self certification mortgages are available to the employed but, although it is possible, it is also unusual that an applicant in an employed situation would not be able to provide proof of income. If an applicant is buying a home as opposed to remortgaging their existing home a larger deposit is usually required than a standard mortgage and the interest rate is often higher. |  |
lf Certification Important Information
Important tips on responsible borrowing
1) - Don't over-commit yourself and make sure that you can cope with the higher re-payments if interest rates continue to rise and/or the fixed, discount or tracker rate ends.
2) - Don't withhold information on commitments or exaggerate income.
The income that you self certify must be true and correct, self certification is not an opportunity to obtain borrowings without having the requisite income. It is a criminal offence to falsify income and information on a mortgage or loan application!
3) - Remember that taking on additional financial commitments during the mortgage term without a corresponding increase in income or a reduction in spending could affect your ability to meet your commitments.
4) - Make sure you have access to some cash for emergencies.
5) - Set yourself a realistic budget and implement it.
6) - Remember that you may be able to protect your income and that Income Protection, ill health and redundancy insurance are important to give you peace of mind.
7) - You may have other credit debts which if left unmanaged can put added pressure on your finances.
8) - Remember that low levels of interest and unemployment may not be sustainable over the mortgage term.
For further information on Self certification mortgages click here to complete our online enquiry form
Your home may be repossessed if you do not keep up with repayments on your mortgage.
The Money Saving Centre is an introducer to Jonathon Mann for the purposes of mortgage introductions only.
The overall cost for comparison is 4.5% APR. The actual rate will depend on your circumstances. Please ask for a personalised illustration. The information is correct at the time of publication but may become outdated.
There may be a fee for mortgage advice, The precise amount will depend on your circumstances but we estimate, but we estimate that it will be no more than 2% of the actual loan amount.
