Self Cert Explained

Most mortgage lenders have insisted on checking applicants income by assessing P60's, employer references and, for those who are self employed, three years audited accounts.

For those earning income in any way other than routine employment, this need to check earnings has limited how much could be borrowed, or even whether an applicant may or may not qualify for a mortgage.

Self certification enables those employed, self employed, newly self employed, seasonal workers and sub contractors to borrow mortgage funds to their full earnings potential. Add to that the list of potential remortgage customers or housebuyers that earn from a non-traditional standpoint and self certification is the only way that they can secure the finance that they need. True self certification means that the lender will not undertake any check of the income figure stated on the application by a prospective customer, by means of referencing or income documentation. In other words you, the customer, declare your own earnings.

Self certification is now supported by an ever increasing number of mortgage lenders, including not only specialist lenders, but mainstream and even household names as well. Interest rates charged are now far more attractive.  Whether it is variable, fixed, tracker, stepped tracker or capped, we can access the whole marketplace. In addition, specialist or exclusive schemes are also made available. 

Historically loans would have been restricted to a much lower maximum in the past, but now up to 90% loan to value can be achieved with certain lenders whilst still keeping rates affordable. We have access to some lenders who will consider self certification loans for up to £1million.

Certain lenders will even take this further and carry out no status related checks at all. Although this can reflect in the overall pricing and terms of the mortgage, it can suit potential borrowers who have a poor credit record or would normally have difficulty proving their earnings. Most lenders will reflect the increase in risk attached to 'non-status' lending by restricting the loan to value to about 85% of the property's value, however it is possible to acquire a non status mortgage loan of up to 90% of the value of the property. True non-status means no aspect of your income or mortgage history will be checked, although usually a credit reference check is still carried out.

Many people with non-standard employment struggle to get a mortgage. Much of their income may be made up of overtime or bonuses (which mainstream lenders will usually take 50%). Often people are on short term contracts or have multiple occupations (again many lenders will only take 50% of the income from a second job). It is for these people that self certification or indeed non-status mortgages is the only real way to secure the required funding.

So if you are moving house, remortgaging to save money or to raise more capital, or simply consolidating your other debts, the finance you require may be more accessible than you think.

Simply contact us for a FREE no obligation mortgage quote.