Self Certification

Self Certification Mortgage Background
There are a vast number of people who earn enough money to easily pay for a mortgage but they can’t prove their income in the usual way. They have no pay slips and they have no single regular employer to vouch for them. Under normal circumstances if you can’t prove your income to a lender then you won’t be able to apply for a mortgage.

Self employed workers are just one group who fall into this category. The number of UK residents who are self employed is predicted to continue rising in the coming years so it’s a growing pool of potential borrowers.

Self-certification mortgages are a solution to this stumbling block because they only require a declaration that the borrower can afford to repay the mortgage. The self-certifier will not be asked to provide full evidence of their income although standard credit checks will usually apply. This opens up the possibility of buying a home to those who can afford it but can’t prove it. Many self-employed people in fact have a much more secure rate of income because they spread their employers rather than some employed workers who are reliant on one source.

Self Certification Market Growth
The provision of mortgages to those who know they can afford them but have no proof is a growing area which means that choice and competitiveness also continue to grow in this area.

The main stream high-street lenders tend to view self-certification as more risky because of the lack of income proof and therefore do not tend to offer them. Self-certification mortgages are outside the usual high street lending remit but specialist lenders can now offer a range of repayment types such as Fixed or Variable rate within the category of self-certification.

Non-Exclusive
Unlike Expatriate mortgages which are also a specialist lending area and are only open to expatriates, self-certification mortgages are not exclusively on offer to the self-employed. These mortgages are open to anyone who either cannot or would rather not have to prove their income to the lender.