Self Certificated Mortgages
Self Certificated Mortgages | You dont Need To Be Self Employed
Self certificated mortgages are homeloans designed for those who find it difficult to prove their income. These are not necessarily just for the self employed. Indeed self certificated mortgages are relevant to a range of different borrowers.
Firstly, of course, are the self employed for whom self certificated mortgages were originally designed. These people may take home an amount that is higher than what is technically shown on their accounts. This is because small business owners often offset a variety of expenses against their net income to reduce their tax burden - all perfectly legally. But when it comes to getting a mortgage their account may show them to be worse off than they really are, so a lender may not offer them a large enough mortgage to buy the property they want. In this instance self certificated mortgages allow self employed borrowers to state the level of income they earn without having to prove it via accounts.
With changing employment patterns more and more people who are not self employed are actually fitting into the category of self certificated mortgages. This is because more people work under flexible working terms and conditions. For example, may people in the IT industry work on specified contracts, perhaps for a year or so, before renewing their contract with the same or a different employer. While they are not technically self employed they do not have a guaranteed income, so self certificated mortgages can be ideal.
Salespeople are also ideal borrowers to take advantage of self certificated mortgages. Because their salary may be made up of a basic wage and commission they may find it hard to prove to a lender exactly what they earn - indeed if they sell less next year their salary will reduce. Self certificated mortgages allow them to declare their income without the lenders requiring proof.
Finally, there could be other reasons why it is difficult to prove your income. Perhaps you have more than one source of income, either numerous jobs or a part-time role and other income such as a trust fund income or maybe even a divorce settlement. Whatever the reason, self certificated mortgages allow you to state what you earn without having to provide the proof or documentation.
So if you fit into any of the categories above or would simply find it difficult to prove your income, self certificated mortgages could be for you.
