Self Certification Remortgage
Self Certification Remortgage | Learn About The Benefits
A self certification remortgage is a good option for anyone who is either self-employed or has varying levels or sources of income. If you are coming to the end of your current mortgage deal you should consider the advantages of a self certification remortgage.
Who is a self certification remortgage suitable for? Well, if you already have a self-cert mortgage that is coming up for renewal then a self certification remortgage is clearly appropriate for you. Even if your deal is not coming up for renewal perhaps you need to switch your deal to release equity from your property, consolidate debt or just get a better rate. Whatever the reason a self certification remortgage could be exactly what you need.
Even if you are currently on a mainstream mortgage your circumstances may have changed in a way that would make it difficult for you to prove your income when it comes to switching. Perhaps you have recently become a freelancer in your chosen field for example, or maybe you have set up a new business but you have only been in operation for a short period of time. If you were previously employed when you took out your original deal your mortgage would have been based on a salary but a mainstream lender may not now accept you current sources of income, or the level of income you now have. In this case a self certification remortgage could fit the bill.
With a self certification remortgage you would not need to prove your income to the lender. Instead you state your annual earnings yourself and sign a form to say that you can afford the monthly repayments on your new mortgage. The lender will still check your credit history and will give you a key facts illustration just like with a mainstream mortgage. This will state the monthly payments and inform you of what your payments could rise to in the event of a rise in interest rates. For your own peace of mind it may be worth leaving an extra buffer above and beyond this. If you can only just afford the repayments as they are now, you leave yourself with no room for manoeuvre if rates move up higher than you expected.
As with any remortgage you should check that you are not liable to pay any charges to your existing lender when you take out a self certification remortgage. The lender you are leaving may charge an exit fee and possibly an early repayment charge if you are still on an agreed initial rate (such as a fixed rate). Ask your lender for a statement of what it will cost to move. 
With a self certification remortgage you may also be liable to pay charges to your new lender, such as arrangement, valuation and legal fees. Again, it is important to find out exactly what the costs will be.
Costs and charges apply to any type of remortgage deal but you could find clear advantages in going for a self certification remortgage if you would find it difficult to prove your income. It could allow you to borrow more than you would be able to with your existing lender and that might make the difference between buying the property you want to live in and missing out because you cannot raise the funds.
In conclusion, if you need to switch your mortgage deal it could make perfect sense to switch to a self certification remortgage deal.
