Free Self Certification Mortgage guide and experiences. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Mortgage
Second Mortgage
A self certification mortgage is a simple way of detailing your income as you simply self declare what you earn and the lender will not insist on seeing audited accounts.
Self certification mortgages were brought in many years ago and were originally designed for people who have a reasonable amount of deposit but are unable to show their true earnings, in other words for the self-employed.
Some self certification mortgage lenders will require you to prove your income in other ways, such as an accountant's certificate (a document signed by your accountant to say that your income is sufficient to finance the loan requested). Your business bank statements may also be required, for your self certification mortgagee lender to determine that your gross income received will be enough to finance the loan requested.
Most self certification mortgage lenders will enhance this information with credit and background checks. If you are a current home owner, you will be asked to provide your existing mortgage statements. If you are renting the lender will ask for a suitable reference from your current landlord.
Self certification mortgages do have limits, most self certification mortgage lenders will only allow you to prove your income in this way if you want to borrow less than 75% loan to value, so you will need to put down a substantial deposit. However, some lenders may allow you borrow up to 85% on a self certification mortgage basis.
By putting down a deposit of for instance 20%, there are a few lenders that will allow clients to certify their income and therefore not look into it. Also some of them will not even require letters or promises from accountants. This type of mortgage is very good as it means that because you are putting in a sizeable deposit; your word will be taken instead of examining every little detail of your financial life.
People with a reasonable amount of deposit but unable to show their true earnings would suit this type of mortgage, but like you can imagine it’s finding the right self certification mortgage lender that can be the problem.
There are many UK self certification mortgage lenders available online. They are usually linked to websites providing information about mortgages. They are very easy to use and in most cases you will never even have to meet with an online UK self certification mortgage lender.
