Cheap Self Certification Mortgage
How To Find A Cheap Self Certification Mortgage And Get Approval
A cheap self certification mortgage was introduced to the market because lenders realised there are many people who genuinely have a good healthy income, but cannot always prove it all. They recognised that many customers were frustrated that they were being disadvantaged because they are self-employed - and tax efficient accounting worked against them when calculating the maximum available mortgage. So they created different schemes to assist their clients, whilst still adopting a professional and responsible approach to lending.
Whilst a salaried person could get a cheap mortgage based on gross income and take into account a recent pay rise, the self-employed and company directors may be assessed on net income and their last set of audited accounts irrespective of how much the business has improved since. With a cheap self certification mortgage this was no longer the case, as the lender would base the mortgage on your declared income.
Other lenders adopted a policy that was based largely on credit scoring and the percentage advance required. With a higher credit score and lower loan-to-value you could use their most attractive schemes without providing the proof of income. This was called "fast tracking"*, and made a cheap self certification mortgage available to a wide range of customers.
Having developed the market, lenders realised there are very many customers whose circumstances and lifestyles simply do not meet conventional lending criteria. They also realised it was a valuable and competitive market, so they developed a cheap self certification mortgage scheme, with incentives, to attract more business.
Now it is not as simple to get a cheap self certification mortgage. And finding the one that best suits your individual circumstances and needs is even more of a challenge. The best cheap self certification mortgage to suit your circumstances and needs isn't available to the general public.
Do you need a self-cert deal, or will it fit a fast track scheme? Are you thinking of taking a discounted scheme, or would a fixed rate suit you better? Are there unusual circumstances involved? In order to obtain the cheap self certification mortgage that works for you, especially in this financial slump, it is essential to prepare yourself financially and you should contact a broker. An independent broker can offer advice on the whole of mortgage market, and help find the cheap self certification mortgage that is best for you.
* A fast track mortgage is available to some borrowers based on the strength of their credit score. A fast track mortgage is NOT a self cert mortgage. The strength of the credit score will depend on whether the lender will request proof of income or not.
