Self Certification Mortgage Quotes

Self Employed / Self Certification Mortgages

Another relative newcomer to the mortgage market, Self Certification mortgages (or self-cert mortgages) are particularly attractive to those borrowers who have access to a reasonable amount of deposit funds, but, for one reason or another, are unable to verify the full amount of their earnings. As more and more entrepreneurial activity is encouraged in the UK, so individual income may be generated from a variety of sources. Those in this position include freelance workers, those who run their own business and others who may consider themselves self-employed.

People within these categories often may not be able to detail exact financial circumstances at any given time. This makes it difficult for banks and mortgage lending organisations who usually insist on verifiable and well-documented evidence on all earnings before considering any type of loan. However, in the absence of such certified information, the prospective borrower can simply declare their entire income, including a partner’s earnings if appropriate, to the mortgage lender, who will then make a check on the applicant’s credit history.

Presuming the checks are satisfactory, then the prospective borrower may apply for the (Self-Cert) mortgage without having to produce all the more usual formal documents.

Before such a mortgage may be granted there is usually an insistence of a deposit of between 10-15% as a minimum. And these mortgages often do carry a higher interest rate than other more conventional mortgages, though they can include all the usual mortgage advantages such as payment holidays.

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