Compare Self-Cert Mortgages
How Do I Compare Self-Cert Mortgages During The Downturn?
Before you compare products...
Before you compare self-cert mortgages, you need to check your credit score. There are no longer any mortgage lenders that will offer mortgages on the word of the borrower, those days are long gone. Now lenders base their self-cert decisions on credit scores – the better the score, the better the chance you have of being accepted. So look at yours and see if you have a decent score, based on your past history as a borrower of credit. If it is poor, then you may have to think of alternatives, but if you do have a great credit score then you should be ready to compare self-cert mortgages.
What would I need to compare self-cert mortgages against?
You would need to compare self-cert mortgages today to all the other mortgage deals that fit your criteria – that’s in relation to how much equity you have, how long you want the mortgage for, what you are earning roughly on a monthly basis. Look at fixed rates, tracker rates, offset mortgages – anything that you may be accepted for. The rates are higher for those who cannot prove their income, but there are still advantages for opting for self-cert.
Nevertheless, when you start to compare self-cert mortgages it won't take long to realise that the more security you offer the lender, whether it is in terms of a greater deposit or a clean credit rating, the wider choice of mortgages you will be offered and the lower the interest rate you will pay. Also, prior to beginning to compare self-cert mortgages, borrowers should bear in mind that the credit crunch, criteria for loans have become more stringent. So although you might not have to prove it, you will now probably have to disclose at least an estimation of your earnings.
How easy it is to compare self-cert mortgages?
Now the Internet is in common use for borrowers of all ages, it would appear easy to compare self-cert mortgages. But going it alone in your application process might not return the best deal for you. Lenders who operate across the self-cert spectrum all impose different lending criteria and have different quirks, pitfalls and preferences. That’s why you need a mortgage broker to help you compare self-cert mortgages saving not just time and money, but anxiety, in what can be a treacherous process for those entering into this now difficult area of mortgages.
* ONS, Sep-Nov 2008
