Self-Cert Mortgage Rates
Self-Cert Mortgage Rates | How to Get the Best Rates Available
How to find self-cert mortgage rates
There are many places you can look for self-cert mortgage rates. The majority of people now search online when they are looking for self-cert mortgage rates, but you can also visit an independent financial adviser or go directly to a branch of a bank or a building society. When you are looking for self-cert mortgage rates there are a number of things that you first must consider.
For instance, is a self-cert mortgage rate right for you?
Self-cert mortgages have been designed to allow people who are not easily able to or cannot prove their annual income. While it was traditionally someone who was self employed who searched for self-cert mortgage rates it is by no means limited to that. If you earn additional income such as through commission, investments or from an overseas source and you would like that to be considered in your application than searching for self-cert mortgage rates could be the right option for you. A self-cert mortgage is also useful if you have recently started up in business and you would like a commercial loan for an office building. When you are looking for self-cert mortgage rates it is important to take the whole mortgage product into consideration and not just look at the interest rate. You may be tempted to just go for the cheapest rate, but it may not necessarily be the best mortgage for you.
99% of self-cert mortgage rates all come with a lenders application or a completion fee. This will often come in the form of a monetary sum, such as £995 or it will be a percentage of the total loan amount you borrow, such as one or two per cent. Self-cert mortgage rates will also have a maximum loan to value. This tells you how much the bank is willing to loan to you in relation to the property value.
So if you have found some self-cert mortgage rates that you like and there is a maximum loan to value of 75 per cent then you must have a 25 per cent deposit. If the loan to value is 90 per cent, then you will need a 10 per cent deposit. When you are looking for self-cert mortgage rates you may find that you do not see many lenders offer a mortgage with a high loan to value. In fact, they will rarely go above 90 per cent. This is because not having to prove your income the lender perceives you as being a slightly higher risk customer.
The good news is there are many more lenders offering self-cert mortgage rates than just a few years ago and some of them will specialise in self-cert mortgages. Another thing you should consider when looking for self-cert mortgage rates is whether there are any early repayment charges. Early repayment charges, also known as early redemption charges, are fees you must pay if you repay all or part of your mortgage early, before the specified date on a contract.
While many mortgages carry these for a certain number of years, if you think you would like to pay off your mortgage early or if you want to remortgage early then you may want to look for self-cert mortgage rates which do not include early repayment charges.
