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 nearly 5 million in the UK according to the Office for National Statistics (Nov 2008). 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 comprises those who are employed but have an inconsistent, irregular or just complicated income that from different sources. For example, you may have a second job, 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 £147,746 according to Nationwide Building Society (Feb 2009), people usually need to increase their borrowing capacity to its absolute fullest.
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 25% and 30% of its value. 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 more likely you will be offered a self cert mortgage.
Prior to starting to compare self 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. Some mortgage brokers in the field compare self cert mortgages on a daily basis and can save you a fortune in time, money - and most importantly, worry.
