Self Certificate Mortgages
Self Certificate Mortgages - With No Need To Prove Income
Are you unable to prove your income? Before you assume that home ownership is out of the question, consider whether self certificate mortgages could help. Because if you've already been turned down for a conventional home purchase loan then you may find there is another option. Unlike conventional loans, self certificate mortgages allow you to borrow money without having to prove your income.
It may sound strange being able to take out a mortgage without having to produce proof of income, but it's true. Self certificate mortgages don't require borrowers to produce payslips, bank statements or audited accounts. Instead, the mortgage lender will take a declaration of your income on trust and "underwrite" the mortgage according to what you can afford. It's that simple - with self certificate mortgages the only requirement is for you to give an honest declaration of how much you can afford. So who is eligible for self certificate mortgages? The answer is anyone who cannot take a conventional mortgage. You might work for yourself because you own your own business, or because you work for different companies on a freelance, contractual or seasonal basis. But other types of people turn to self certificate mortgages because they have been turned down elsewhere.
For example, many people supplement their basic income with second jobs, bonuses or commission. These people may find that conventional mortgage lenders won't take their additional earnings into account when calculating how much they can afford. But self certificate mortgages will include different income streams in their affordability calculations.
Who offers Self Certificate Mortgages?
Many different types of lenders offer self certificate mortgages. Some banks and building societies that you might see on a typical high street will consider people unable to prove their income. And beyond the high street, there are a host of financial institutions that specialise in lending to people like you. 
In fact, there is so much choice that it's possible to pick from many self certificate mortgages that suit your needs in order to find the best deal. A mortgage broker will be able to take you through the options and ensure the self certificate mortgages available are easily accessible.
Choosing the right mortgage for you is the same whatever type of product you need. Interest rate is important, especially with self certificate mortgages where the rate tends to be slightly higher than conventional loans, but it's not the be all and end all. That's because most lenders will also charge fees that add on to the total cost of your mortgage. These include application fees, early repayment charges and exit fees.
Is there anything else I should consider?
Another factor to consider when choosing any mortgage is how you want the interest to be charged. You can opt for fixed rates, which will charge the same interest rate for a set period of time before reverting to a lender's Standard Variable Rate. Or you could choose a tracker rates which literally tracks the interest rate set by the Bank of England. A broker will be able to advise you on the best choice for you.
Buying a house is a massive financial commitment but thanks to self certificate mortgages it's an option that's open to many different types of people - even those that can't prove their income.
