Self Certification Mortgage Quote
Self Certification Mortgage Quote | Getting The Best Deal
A self certification mortgage quote works differently to mainstream mortgage quotes. A self certification mortgage quote is often required when the applicant is self employed, or works on a contractual basis and cannot provide the three months proof of income that is often required when obtaining a quote for a mainstream mortgage. To get a self certification mortgage quote you may well be required to show proof of income. You will have to state what you earn on the application form but you may not be asked to prove that you earn this amount. Some lenders require a declaration of what you can afford and will ask for proof, maybe by asking for an accountant's certificate showing that your income is enough to make the repayments on the loan.
A self certification mortgage quote will traditionally been sought by homebuyers who are self employed but it is by no means limited to those. It can be used by anyone who is unable to supply the required proof of income when seeking a quote. This often includes someone who works on a contract basis, had an income coming from an overseas source, earns commission, received income from investment, works seasonally, or has recently set up a business and does not yet have three years worth of accounts.
Getting a self certification mortgage quote can be useful if you are self employed and are expecting your income to increase in the near future. Some lenders, before they will provide you with a self certification mortgage quote, will ask for a reference pertaining to your current or previous mortgage, or a written reference from your landlord showing that you have always been able to pay the rent. In these tough times, lenders need to reduce risk, and that means being 100% sure that you will be able to meet mortgage payments.
Rarely does a self certification mortgage quote go above 70% of the loan to value. This is because the lender does not make a check on your stated annual income so they are taking a higher risk in giving you the loan. Therefore, a self certification mortgage quote generally will go as high as 65 or maybe in some cases 75% loan to value, dependent on the deposit you provide. They may also have a slightly higher interest rate than a mainstream mortgage.
Do not look for a self certification mortgage quote alone, because you simply will not be able to access the few deals that are out there. In the credit crunch, you need a professional to guide you through the self cert minefield and find you a self certification mortgage quote that fits your needs.
