Non Status Mortgages UK
Non Status Mortgages UK - Comparison with a Full Status Loan
Status versus non status mortgages UK
You may have heard the term non status mortgages before and wondered whether this type of homeloan applies to you. Well, non status mortgages apply to anyone who finds it difficult to prove their income.
Despite the connotations the phrase may suggest, there is nothing inferior about being a "non-status" borrower. In fact, it is relatively straightforward to try and explain how people who seek non status mortgages UK differ to typical mortgage borrowers. A status borrower is somebody whose financial situation is easily explainable and understood. Working in full time employment, they are paid a clearly defined salary, with their income not changing a significant amount, or even at all, from month to month. In contrast, non status mortgages UK borrowers will usually have more complex income arrangements. Often they are self-employed. Working for themselves, whether in a variety of different locations, such as an IT contractor, or staying in one place, such as a salon-based hairdresser or beauty therapist, non status mortgages UK borrowers cannot rely on payslips or proof from an employer of how much they earn. Instead, when it comes to getting a mortgage they estimate for a lender their anticipated earnings, and then if asked provide financial information or documentation, such as bank statements or details from an accountant, of their previous earnings. This process is known as self-certifying or self-certification: as the "self" part of the name suggests, non status mortgages UK borrowers simply provide income information for themselves.
Are non status mortgages UK borrowers always self-employed?
No, not always. In fact, other people often have cause to apply for non status mortgages UK. If you work in a job where your monthly salary fluctuates, or you have other sources of income that provide you with irregular sums of money at different intervals throughout the year, then you could fall into the same category as non status mortgages UK borrowers. In addition to any salary you earn from employment, you may receive money from investments, pensions or an annuity which is not always a fixed amount. People who want this money to be taken into account when being considered for a loan to purchase a property apply for non status mortgages UK.
Or you may have more than one job. Perhaps you use your evenings and weekends to top up your income, whether with occasional shift work, or by earning commission from selling items, from a catalogue for example. Again, if you want this income to count towards how much a mortgage lender will let you borrow, you will be classed as a non status mortgages UK borrower.
In fact, even those with straightforward working arrangements, who only have one job and are working in permanent employment may be non status mortgages UK borrowers. If you work in any kind of commission based job, for example you are a salesperson in a car showroom, or your monthly salary depends on how well a team performs, for example you manage a travel agency branch, then you could also be classed alongside non status mortgages UK borrowers, and will need to declare yourself for a lender how much you expect to earn.
Think this might be right for you?
If these descriptions of some typical types of non status mortgages UK borrowers sound like they could apply to you, then a non status mortgage could be exactly what you need to help you buy the home you want.
