Self Certification

Self Certification – Flexibility
The term Self-certification mortgage really describes a means of access to the mortgage for people who cannot prove their earnings rather than the type of mortgage available.

Arranging a Self-certified mortgage will not in itself have an effect on the basic structure of the mortgage being offered although because it is Self-certified and obtained from a specialist lender there will be less choice of types available. However, even this is changing and some borrowers will not even notice the lack of choice with all of the popular options such as Fixed Rate, Capped Rate, Tracker and of course Variable Rate available.

With Self-certification mortgages it is often possible to choose one with a flexible element, such as un-penalised payment holidays. For self-employed workers and others who have a variable monthly income this can be very useful feature as it can suit the self-employed lifestyle.

Simply opting for a Self-certification mortgage does not prevent you from needing to think carefully about the type of mortgage that you will choose, as it’s always the interest repayment element that makes a month on month difference to bills.

More Expense
The Self-certification mortgage is often more expensive than standard mortgages partly because they are only available from specialist lenders and there are less of them around. However, the Self-certification market is becoming more competitive as its popularity grows and the pool of borrowers increases. Competition to attract borrowers means that lenders will continue to review their stance on self-certification mortgages.

By taking out a Self-certification mortgage the borrower will not necessarily be locking themselves into a long term deal that they cannot switch from. It will be dependent on the mortgage and lender that they choose but there is nothing about self-certification mortgages themselves that prevents borrowers looking for a better deal a few years into the mortgage. Early redemption and switching clauses may be part of the deal attached to their self-certified Capped Rate mortgage for instance but not the Self-certification element of their mortgage.