Non-Status Mortgage
Non-Status Mortgage - More Than Just a Loan For Buying a Home
A non-status mortgage is generally offered by lenders to people whose income it is difficult to ascertain using the standard proof of income checks.While it was traditionally difficult to get a loan if you did not meet the mainstream lending criteria, there are now many lenders that will offer a non-status mortgage, many lenders will now also specialise in those types of products. While a non-status mortgage was originally introduced to help those who are self employed get a mortgage, it is not just limited to occupation status. Someone who is employed full time can get a non-status mortgage. This can include those who work on a contract-basis, earn bonus commission, receive income from investment or work seasonally.
With a non-status mortgage,because you are not required to prove your income in
the standard way, such as with payslips or P60's, mortgage lenders are often more cautious with how they lend to you and you will often have to pay a higher interest rate than a standard mortgage. The good news is that the number of lenders offering a non-status mortgage has increased, making the mortgage interest rates more competitive than just a few years ago.
A non-status mortgage is also known as a self certification mortgage. This means that you self certify your annual income and have to make a declaration that you can afford to meet the monthly payment on the amount you wish to borrow. The method of underwriting on a non-status mortgage is similar to that for a mainstream mortgage, but they do not ask you to prove your income.
A non-status mortgage is not just for buying a house.
If you have a business and need a loan to buy a commercial property you can also get a non-status mortgage. This is especially useful if you have set up in business 
recently and do not have enough accounts to prove your income. There are also different levels of nonstatus mortgage. Some are considered to be a "true" non-status mortgage because no aspect of your annual income or your mortgage history will be checked. However, the lender will often carry out a credit reference check and may contact your employer or your accountant for a reference to make sure that you will be able to make the mortgage repayments. If you are already a homeowner some lenders will ask you to supply some existing mortgage statements, and if you are living in rented accommodation, the landlord may be asked to supply a reference. So whether you are buying your first home or remortgaging, with a non-status mortgage a loan could be more accessible than you think.
