Non Status Mortgage
Non Status Mortgage - Recent Changes in Self Declaration Finance
What is a non status mortgage? Find out here
The non status mortgage is a mortgage designed for those that have trouble proving what their annual income is. Originally designed for those that are self employed and run their own businesses, the non status mortgage can now be appropriate for a much wider range of people, applying to those that work a second job or have an occupation that has a fluctuating income month to month, such as a commission based sales job.
Although the term non status mortgage is still commonly used by the public, mortgage lenders and brokers now refer to this type of mortgage as a self-cert mortgage. Borrowers may be confused by talk of self cert or self certification alongside the non status mortgage, but don't be worried by the mortgage industry's jargon - these all add up to the same type of mortgage that allows people to apply for mortgages without having to verify their income to a lender.
Before the mortgage industry became regulated in November 2004 by the Financial Services Authority (also known as the FSA, though not to be confused with the Food Standards Agency), the non status mortgage was the term of choice and would allow mortgage applicants to not disclose their income to a lender. With regulation coming into force, many of the mortgage 
sector's business practices were tightened up to ensure responsible and fair lending. Hence, lenders' now require details of an income to be declared though not proven.
But don't worry about getting to grips with the new mortgage lingo; the mortgage experts know exactly what you are referring to and exactly how to advise you on what is best for your situation.
Being the sort of specialist mortgage that it is, the non status mortgage often has a slightly higher rate than a mainstream deal to reflect the risk the lender is taking on an unverified income. Nevertheless, the non status mortgage can be very competitively priced, especially if you run your own business and can provide accounts that show a consistent and regular income.
However, for those with smaller deposits, just beware that your choice of lender may be restricted, as many require around 20 per cent to be put down, and you may also incur 
penalties on your mortgage. In these circumstances, it really is worth getting professional advice from a mortgage broker who can explain your options in detail and answer all your questions of what is a complex issue.
So, while the non status mortgage has changed what it requires a borrower to tell a lender, the fundamentals remain the same: the non status mortgage is for those who find it difficult to verify how much they earn in a year through pay slips alone. Be you self employed as a reflexologist, working three jobs as a barman, personal trainer and piano teacher, or someone who's earnings vary widely from the benefit of large bonuses come Christmas or Easter, the non status mortgage could well be the right type for you when looking to buy a home.
