Non Status Mortgage UK
Non Status Mortgage UK - How It Could Work For You
What is a non status mortgage? Find out here
A non status mortgage UK is another term for a self certification mortgage. These house purchase loans are designed especially for people who are unable to prove their income but are able to meet their mortgage payments. Although many lenders will have rigid rules on who they will lend to, non status mortgage UK providers look at borrowers' general affordability to assess whether they can afford to borrow or not.
Before the mortgage market was regulated by the Financial Services Authority, a government body, non status mortgage UK was a term that was applied to all mortgage borrowers that either couldn't prove their income or had adverse credit history. Today, the term isn't commonly used by mortgage lenders or brokers, but when it is it tends to specifically refer to those individuals who have difficulty proving their earning status. Such loans are also referred to as self cert, because borrowers literally have to "self certify" their incomes.
The name may have changed, but non status mortgage UK products continue to help people unable to prove their income get on the property ladder. A range of borrowers could benefit from non status mortgage UK products. These include but are not limited to the self employed, freelancers, contractual or commission workers and people with more than one stream of income. Basically anyone who isn't able to show payslips or audited accounts to their mortgage broker or non status mortgage UK lender when making an application. Instead, all borrowers need to do is make and sign a declaration of the amount of income that is earned on the amount you wish to borrow and no proof of this income will be requested.
So, how else have non status mortgage UK products changed since mortgage regulation was introduced? Well, for a start they have become a lot more popular. Around 10%* of people in the UK are classified as self employed, and that figure doesn't include many other people who can't prove their income. Unsurprisingly, many of these people want to get on the property ladder and don't want to let their employment circumstances hold them back. So non status mortgage UK lenders have responded by offering many different types of products that are bound to appeal to a range of different borrowers. Although interest rates on non status mortgage UK products tend to be slightly higher than regular mortgages, the boundaries are increasingly becoming blurred and it is possible for someone unable to prove their income to still get a good deal on a mortgage.
The features of non status mortgage UK products have also improved, with some lenders offering full portability so borrowers can move the mortgage if they need to. And in contrast to the situation a few years ago, when lenders expected non status mortgage UK borrowers to put down huge deposits, nowadays people can borrow more money to meet ever rising house price inflation.
The new name for non status mortgage UK products is now self cert, and that's not all that's changed. Interest rates have come down and criteria has widened to help anyone unable to prove their income get a good deal on a mortgage.
*According to the Office of National Statistics - http://www.statistics.gov.uk
