Compare Self-Cert Mortgage
Compare Self-Cert Mortgage | Know What to Look Out For
What do you want?
Before you even compare self cert mortgage, know what you want. You work hard for your money by either being self employed or having more than one income - so pick a mortgage that will work with your income streams. Go through all your finances, past and present, to see what you can afford, and more importantly what you cannot. Talk to a broker, or even a fellow borrower who also couldn't prove their income to see what is in store for you. Before you compare self cert mortgage, think.
The rate - don't compare against prime headline figures
Also, before you compare self certification mortgage rates, don't assume you will be able to get as cheap a deal as you may have had in the past, or that you have had with a prime mortgage. Self cert means a bigger risk to a lender, so the rates are not going to be as competitive - but this doesn't mean they are unaffordable. Even in this period of lending uncertainty in the UK, there are still good self cert rates out there, regardless of the main rate. Remember - as you begin to compare self cert mortgage rates, don't forget that headline rates are not everything. Don't get swayed by the big upfront numbers - you don't know what's behind them.
The extras costs - don't get stung
Because they are riskier loans, lenders may be inclined to include nasty hidden extras in with the deal. When you compare self cert mortgage deals, look at everything - early redemption charges, exit fees, application fees, penalties, clauses - because these are the costs that will weigh on you, especially in the lean months. So think of the loan as a whole when you compare self certification mortgage loans or you could lose out.
The terms - how long have you got?
One of the most important things to consider when you compare self cert mortgage deals is time. With self cert mortgages, the term of the loan could be vital to how you deal with it. How long do you want your mortgage for? Is a fixed rate or a tracker a better option for the term? Is this a new mortgage or a remortgage? Think of the long-term when you compare self cert mortgage lives - you need to be able to guarantee your income for a long time, so be realistic.
The lender - what is your credit like?
Most importantly for you as a self cert borrower is to consider your credit score. Because you cannot prove your income, you need something to show lenders proof that you have and will earn money - your credit history. From this a lender will be able to decide whether you are a good bet, even without proof of income. So before you compare self cert mortgage rates or terms, check your credit score. It will be what ultimately decides your financial future. It will dictate what deal you can get. Go go online and get your score, then talk to an adviser and get an idea of what you could be offered with that score. If you compare self cert mortgage deals knowing what you will be entitled to, it will make things a whole lot easier.
*Source: According to the Office of National Statistics - http://www.statistics.gov.uk
