Non-Status Mortgages
Non-Status Mortgages | Do You Match The Required Criteria?
Non-status mortgages are not only aimed at borrowers who work for themselves. Income can be 'lumpy' and irregular in other ways too. For example, it might be that you earn a chunk of your salary through commission in the case of an estate agent, salesman or recruitment consultant for example. It may also be that you have more than one job and want your extra earnings to be reflected in the amount you can borrow. After all, sizing up in today's housing market requires all the borrowing you can get. In all of these situations, non-status mortgages could be relevant.
The main variant between non-status mortgages and standard deals is that borrowers - by the nature of their earnings - will not have to prove their declared income or salary to the lender. Although the confirmed earnings now required by lenders may not be verified, they will still have to meet the specific criteria for the deal you want within some lenders' non-status mortgages. This will be through their credit score, which during these tough times, will need to be excellent.
When it comes to non-status mortgages, some lenders tend to add an extra layer of security to mitigate what they deem to be a higher lending risk than standard deals, because they are working on credit score alone. This means a larger deposit - usually around 25 per cent of the property value - might be required at the outset, or a higher interest rate will be attached to the deal. However, non-status mortgages come with the same principals as any other type; that is the bigger your deposit, the better your chance are for success and for a lower rate of interest will apply.
However, non-status mortgages may not be necessary if you have more than three years of certified accounts from self-employment. This is regarded by lenders as being 'established' in your job, and therefore a standard mortgage will usually be feasible. In this case, rather than looking at non-status mortgages, you could be better off checking out mainstream mortgage deals first.
Due to the more individual criteria of non-status mortgages, it's usually best to apply through a mortgage broker that has experience in dealing with non-status mortgages. This way, as well as getting the right type of mortgage, you are getting the best deal for your circumstances too.
