Self Certification Mortgage
Self Certification Mortgage | The Only Way onto the Ladder Now?
First-time buyer hell
Things are not looking great for first-time buyers as the credit crunch hits the UK mortgage market. Lenders are raising rates, pulling high loan to value deals and tightening credit. This means it is harder than ever to get onto the housing ladder for all first-time buyers. But what if you can't prove your income? Then it could be a real nightmare. You may have several jobs, earn bonuses, work on a freelance basis or even be self-employed - all of which are difficult to prove to lenders, especially lenders who are ever warier to lend. A self certification mortgage is different - if you can afford the mortgage and can stand out from the crowds of struggling first-timers, but just can't prove it then a self certification mortgage lender can help.
Can't prove your worth?
You may have been turned down for a first-time buyer mortgage already - and it must be irritating to be turned down if you have the funds. Millions of Brits can easily afford mortgages, but can't prove it, so they turn to a self certification mortgage. If you have two years of accounts proving past earnings, and your credit is good there is no reason to be turned down again. Lenders who deal with self certification mortgages know it can be difficult to get onto the housing ladder with no solid monthly income, but they also know many people are earning above and beyond PAYE jobbers. So, with their help and some good advice you can get that home.
Flexible
Self certification mortgage lenders know that first-time buyers need flexibility with their mortgage. They may earn more one month and less the next. They may want to pay off more of their mortgage when things are good, bide their time when things are tighter. The nature of self cert is flexibility - and that is what is going to get you up and keep you on the housing ladder. So talk to your adviser and see if you can find a self certification mortgage that will fit with your monthly incomes and one that will fit in with your long term plans.
Not easy
Although a self certification mortgage can be the key to getting a property, it is not a foregone conclusion. Any broker or lender will tell you the mortgage industry is low right now, so borrowers have to be smart. If you think you could profit from a self cert deal, get some advice. Find out which lenders are still lending to first-time buyers and make sure all your accounts are in order - the lender needs to be convinced that you can and will pay your mortgage. Check your credit also - it is key when a lender is deciding to offer a self certification mortgage. But overall be on top of everything as the UK housing ladder is slipping further from many people's grasp, and you need to be sure of yourself and your earnings if you are going to reach it with a self certification mortgage.
