Self Cert Mortgage Rate
How Does A Self Cert Mortgage Rate Compare With Standard Rates?
Typically, when considering mortgage rates, you may notice that the self cert mortgage rate will be slightly higher than the standard one that you get from a high street lender. But don't be disheartened by this, as you will find that many a self cert mortgage rate will turn out to be just as competitive in comparison.
The self cert market has expanded remarkably over the past decade as people have changed their working style to incorporate incomes from outside their job or opened up their own businesses. This means that more and more self cert lenders have entered the market and therefore had to become far more competitive in the self cert mortgage rate they offer.
Of course, a slightly higher self cert mortgage rate can be put down to the fact that lenders are taking a greater risk on someone who does not have a guaranteed income landing in their bank account every month. Another factor behind the self cert mortgage rate is that lenders will also normally require a larger deposit. Many restrict the amount they will lend to 75 per cent of the value of the property, but there are some that will go higher than this.
As with any mortgage, the greater the deposit a borrower has to put down, the better the chances are the lender will accept the application and borrowers will avoid penalties, such as Higher Lending Charges, imposed on borrowers with a small deposit. Something else to consider is that the self cert mortgage rate can be also be affected by the length of time a person has been self employed and can provide business accounts for.
There is no doubt that having less of a deposit creates fewer options, but lenders are continually striving to find new ways to develop their mortgages to give more access to people. There is a lender out there with a self cert mortgage rate to suit you.
Fixed or tracker?
Another factor when it comes to the self cert mortgage rate will be which mortgage option you decide to go for - the classic conundrum of fixed vs tracker rate. 
The fixed self cert mortgage rate provides the security many prefer, knowing their mortgage repayments will not alter month to month. Others will opt for a tracker rate that follows the Bank of England Base Rate, as they are willing to have a potentially varying payment each month, but could benefit from a reduction in the Base Rate. It is up to you and what you feel your income and future income will be able to deal with.
Shopping around is vital for finding the best self cert mortgage rate for you. Just remember some headline rates will come with various fees attached, so understanding the limit of you affordability is vital when finding the ideal self cert mortgage rate.
