Self Certification Mortgage Quote
Self Certification Mortgage Quote | Getting The Best Deal
Obtaining a self certification mortgage quote is much easier today than that it was just a few years ago. This is because there are a lot more lenders in the market place who offer a self certification mortgage quote. This has increased the competition in the market and as a result customers can find deals with more competitive interest rates.
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 which is often required when obtaining a quote for a mainstream mortgage. To get a self certification mortgage quote you will not 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. Many lenders require a declaration of what you can afford and will not ask for proof, while some lenders may ask for an accountant's certificate showing that your income is enough to make the repayments on the loan.
Self certification has traditionally been used 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.
Rarely does a self certification mortgage quote go above 90 per cent 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, self certification mortgage quotes generally go as high as 75 or 85 per cent loan to value, dependent on the deposit you provide. They may also have a slightly higher interest rate than a mainstream mortgage.
When you are getting your self certification mortgage quote it is importantnot to take on a loan that you will not be able to manage the repayments for. Although the self certification mortgage quote may be a slightly higher interest rate than for a similar mainstream rate, the customer should still have access to the same discounts, incentives and flexibility as a mainstream mortgage.
Do not look for a self certification mortgage quote from just one lender. Mortgage lenders will offer different varieties of self certification mortgage products with different criteria. Some will require a number of checks to be required, such as with your employer or accountant, while others will accept your application with just a simple declaration that you have the ability to afford the payments.
