Self Certification Remortgages
Self Certification Remortgages - What The Lender Wants From You
Self certification remortgages are fast having to become the remortgage of choice for many borrowers across Britain, as work patterns change to incorporate second incomes and people move to having their own businesses. Becoming self employed is a dream for many and can be a daunting one at that, but along with it comes another change - your choice of mortgage. If your current mortgage is up for renewal and your working lifestyle has changed in the interim, then you could well be looking at self certification remortgages.
Self certification remortgages are essential for those whose circumstances have gone from having a paid salary to being their own boss as a freelance photographer say, or their basic salary is now being boosted by bonuses each year, or they have taken on a second job. The borrower that cannot verify their annual income with wage slips is the one that should consider self certification remortgages.
Essentially, what these mortgages involve is stating your income to the lender without the need to provide independent proof. Someone who is self employed might also have to back this up with accounts from their business. However, if your business has been operating for less than 12 months, this could limit your choice of lenders.
Along with these requirements, self certification mortgage lenders will usually require the borrower to have a fairly substantial deposit, as many will only lend up to 75 per cent of the property value. Of course, some lenders do stretch to a greater percentage, but this could again limit your mortgage options when it comes to the choice of lender, rate and the flexibility built into the mortgage.
While self certification remortgages can have a higher rate, they remain competitively priced and the last thing anyone should do is put off getting one. This is essential so that you do not end up on your lender's standard variable rate, which could be 2 or 3 per cent above your current mortgage rate. This can be easily avoided through finding self certification remortgages that suit you.
The next step.
The bamboozling array of mortgages out there is enough to make anyone's head spin, not least when your time as a self employed individual is stretched to the limit. When looking for specialist remortgages like self certification remortgages, it makes sense to enlist the professional services of a broker who can take you through the best self certification remortgages for you and explain what your options are.
Mortgage brokers also have access to mortgages which are not available direct to the consumer and this is especially true of mortgages like self certification remortgages. Many lenders often only deal through brokers when it comes to specialist types of mortgages, as they require professionals to explain the ins and outs of them. Self certification remortgages fall under that category.
Yet, while self certification remortgages may seem more complicated than your standard remortgage, they don't have to be, as doing your research and getting some advice should easily put them within your grasp.
