Self Certification Mortgage Lenders
Fast Track Lenders - An Alternative To Self Certification Mortgage Lenders
Is it safe?
It is, as it is a tried and tested method of mortgage application. Non-fast track and lenders that are not self certification mortgage lenders may still use affordability calculators instead of simply sticking to income multiples - so it is not uncommon for your income to not be a major deciding factor when it comes to your mortgage being accepted. Many lenders, including self certification mortgage lenders, understand that in the 21st century there is a lot more to a borrower than what their monthly pay cheque says. So they have developed systems that use credit scores and past records to decide on the borrower as a whole, past and present - which is perfect for self cert borrowers.
In this time of credit crunch and tightening of belts, self certification mortgage lenders are more cautious than ever, but they are still using their affordability calculators to decide on who to lend to. So are they safe? Well, lenders are taking a risk on them still, so it is safe to assume it's ok for you to do the same.
Doesn't a quick mortgage mean a bad mortgage?
No. Before you even apply for a fast track mortgage, an adviser will have gone through all your finances with a fine toothcomb to make sure you are ready for this form of certifying mortgage*. The self certification mortgage lenders too will have made sure their fast track systems can compute every affordability calculation - a lot of effort, time and money have gone into these high-tech calculators. Also, just because the application is a quick process doesn't mean the mortgage has been thrown together. Fast track lenders, like self certification mortgage lenders, spend many months ensuring that their self cert products work, and will work for you.
Will I pay for the convenience?
Not at all, if anything you can save money. Fasttrack means, that unlike self certification mortgage lenders, they can spend less time and less manpower going through documents, double checking numbers and weighing up their options. Fast track just means a push of a button - as with so many things nowadays, technology is making life easier.
But even though technology speeds things up, there is still work to do by you and your adviser - fast track is just the last hurdle. But the work you put in beforehand will be worthwhile - like with self certification mortgage lenders, just because you cannot prove your income you should be paying more to take out a mortgage. With lenders' fast track and their affordability calculators, those borrowers who used to rely on self certification mortgage lenders can get a mortgage and carry on earning more and paying less for their mortgage.
* 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.
