Compare Self Cert Mortgages
Compare Self Cert Mortgages | Make Sure You Land The Best Deal
Why would I need to compare self cert mortgages?
There are a growing number of borrowers in the UK who will need to compare self cert mortgages because of the way their income is derived. The first obvious group are the self-employed, of which there are more than 3 million (3,337,000) in the UK (Q1; 2007) according to the Office for National Statistics (ONS). However, if you are in possession of three or more years' trading accounts, you may be eligible for a standard mortgage.
The second group who will need to compare self cert mortgages are those who are employed but have an inconsistent, irregular or just complicated income that is derived from different sources. For example, you may have a second job - such as childminding or dog walking - which varies in the frequency and number of hours worked.
You may also need to compare self cert mortgages if a large proportion of your salary is derived through commission, such as in the case of an estate agent or recruitment consultant. Whereas this commission might not be taken into account when applying for a traditional mortgage that uses income multiples to assess affordability, with a self cert mortgage, it would. And given the fact the average house price now stands at a staggering £183,898 according to Nationwide Building Society (August 2007), people usually need to increase their borrowing capacity to its absolute fullest.
Before I start to compare self cert mortgages what will I need to qualify for the loan?
Before you start to compare self cert mortgages, you will need to check your level of capital. Typically, a self cert mortgage provider will want to see you have a deposit to put down on the property of between 15% and 20% of its value. However, as competition among lenders is stepping up, the deposit required can now be as little as 5%. That said, when you start to compare self cert mortgages it won't take you long to realise that the more security you can 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.
Prior to starting to compare cert mortgages, borrowers should bear in mind that since mortgages came under regulation from the Financial Services Authority (FSA) in November 2004, some criteria loans has become more stringent, such as the need to state an income on the application form.
How easy it is to compare self cert mortgages?
With the advent of the internet it would first appear easy to compare self cert mortgages - and you may feel you want to. But going it alone in your application process might not return the best deal for you. Lenders across the self-cert spectrum all impose different criteria and have different preferences. Mortgage brokers in the field such as TMBL, that compare self cert mortgages on a daily basis, can save you a fortune in time, money - and most importantly, worry.
