Self Certification Mortgages


If you are self employed or own your own business, you may not be able to provide sufficient evidence of your income to enable you to secure a conventional or Full Status Mortgage.  Typically, the requirement for a Full Status Mortgage is that you are an employee of a company or that you can provide suitable trading figures or business accounts for at least the past 2 to 3 years.

You may need a mortgage or home loan - to buy somewhere to live, to consolidate your debts, or to finance a lifestyle change?  Lack of evidence about your current circumstances may prevent you from obtaining the mortgage you need. Some companies provide help in the form of a Self Certification Mortgage (also know as a Low Documentation Mortgage or Self-Certified Mortgage).

What is a Self Certification Mortgage?  This is a mortgage where a borrower states their income and signs a confirmation of their ability to repay a loan, without having to provide evidence such as accounts, payslips or bank statements.

Because less evidence of your ability to pay is provided, Self Certification Mortgages are seen by mortgage lenders as being a higher risk and, consequently, interest rates are often higher than standard Full Status mortgages.

Finding the best Self Certification Mortgage.  Self Certification Mortgages are available for new and existing homeowners for a variety of purposes such as debt consolidation, home improvements, car purchases, and holidays.  The market is very competitive and the best rates available to you may depend upon your personal circumstances.  The more evidence that you can provide that the lender accepts as indicating  that you are a "lower risk", the more likely you are to obtain a lower interest rate.  Compare a number of loan suppliers (online links will allow you to get quick quotes before you make any commitments) to find the best deal for you.

Do not be tempted to exaggerate your income.  Use online mortgage calculators to check that you can afford the repayments - if you borrow more than you can afford to pay back, then your business and credit rating may suffer and you may risk losing your home.

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Financial Information Services; Mortgages; Personal Credit Checks; Debt Consolidation Loans

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