Self Cert Mortgage Lenders
Self Cert Mortgage Lenders | How They Judge Borrowers
Self cert mortgage lenders recognise that not all people can prove their income but even those unable to produce payslips or P60s can still afford to meet mortgage repayments. Self cert mortgage lenders come in all shapes and sizes. Some high street banks and building societies now offer fast track loans to the self employed**. And some self cert mortgage lenders are independent companies that sell competitive products through mortgage brokers and independent financial advisers.
When you apply for any type of mortgage, lenders - including self cert mortgage lenders - will look at three things. Firstly, you and your ability to afford a loan, secondly your credit history, and thirdly the property you want to buy. But unlike traditional lenders, self cert mortgage lenders do not assess your ability to pay back by asking to see proof of earnings. Instead, they will ask you to estimate your income, which they will take on trust, and ask you to sign a declaration of how much you can afford to repay. Some self cert mortgage lenders might also ask to see your bank statements or audited accounts, or consult with your accountant.
So the self cert mortgage lenders will assess your credit history. They will go through all your previous loans, credit cards and mortgages and see how you handled them. The self cert mortgage lenders want to see how you managed credit as a self cert borrower in the past - if you handled things well, the better your chance of a getting a loan.
But you can do some things too if you want to make sure you look as good as you can for self cert mortgage lenders. If you have an accountant, ask them to help them prove how much you have earned as someone with a different income stream. You can also make sure all your debts are in order and all your money is where it should be. But most importantly, if you want to be assured you will be judged as best you can by self cert mortgage lenders get some professional mortgage advice.
* According to the Office of National Statistics
** A fast track mortgage is available to some borrowers based on the strength of their credit score. A fast track mortgage is NOT a self cert mortgage. The strength of the credit score will depend on whether the lender will request proof of income or not.
