Self Certification UK
Self Certification UK | How To Ensure Your Approval
Why would I need to look at self certification uk based mortgage?
The majority of borrowers that would be looking at taking a self certification uk mortgage are self-employed and will therefore have to 'self-certify' their loan. This means declaring an estimated income in the absence of PAYE payslips. However a self certification uk mortgage will not be required if the self-employed borrower has three or more years' audited accounts. This shows that their income is reliable in the medium to long term and they are therefore 'good to go' for a mainstream mortgage.
Who else would need to look at a self certification uk mortgage deal?
But it's not just borrowers with their own companies or small businesses that will need to seek out the best self certification uk mortgage. The type of mortgage is also suitable for standard PAYE employees whose basic salary does not represent their total earnings. For example, they might receive dividends through shares in a company, large bonuses of a banking job in the city, or a significant part of their salary could comprise of commission, as is the case with an estate agent or recruitment consultant. Also trying to sift out a self certification uk mortgage would be people with more than one job. For example, a bar job in the evening or child-minding during the day.
How do self certification uk mortgages differ to regular deals?
It's also worth noting that since all mortgages - including self certification uk mortgage deals - were regulated by the Financial Services Authority (FSA) at the end of 2004, borrowers must state - although not prove - this self-generated or 'extra' earnings.
Deposits required on self certification uk mortgages are usually greater than on a standard loan as the risk of an irregular income will have to be paid for. Lenders usually require a minimum 20 per cent of the property value on self certification uk mortgages. Similarly, interest rates on self certification uk mortgages can also be higher. That said however, competition in the self certification uk market is growing which means they are becoming closer to standard loans in terms of price. And in terms of deposit some deals now only require five per cent.
However, the same mantra applies to self certification uk lending as to any other; that is the greater deposit you can put down - and the cleaner your credit record - the better self certification uk mortgage you will qualify for.
How easy is it to obtain self certification uk mortgage deal?
There is a raft of information about self certification uk mortgages available. But sifting out what you actually need for your individual circumstances is more difficult. No two borrowers are ever the same when it comes to self certification uk lending so a good mortgage broker like TMBL can work wonders.
