Self Certified Mortgage UK
Self Certified Mortgage UK | Learn The Facts
Think a self certified mortgage UK may be for you? Perhaps you are self employed, or have more than one job, or your income varies from month to month. A self certified mortgage UK- a term used to describe a borrower in the UK who needs a self certified mortgage- may be your only chance of being able to buy a house. Read on for more information on the types of people for whom a self certified mortgage UK may be relevant, what sets this type of mortgage apart, and how it may be able to help you.
Who might need a self certified mortgage UK?
Working patterns globally have changed. People are able to run their businesses on an international scale thanks to the internet, technological advances have made it easier to work from home, and more people are choosing to set up businesses and work for themselves. Mortgage lenders have had to adapt to these change in the way people earn their money, and in this country these type of mortgages are described as self certified, giving way to the term self certified mortgage UK. There are three main types of people who may need a self certified mortgage UK in order to buy a house- the self-employed, those whose income fluctuates, and people who want money earned in addition to their main salary to be taken into account.
Self employed?
One of the key criteria for qualifying for a self certified mortgage UK is that you are unable to provide proof of how much you earn, for example with payslips produced by your employer. Self employed people, for example beauty therapists or taxi-drivers, are perfect examples of this. A typical borrower will be asked to produce payslips to show they are able to afford to make the monthly repayments on the mortgage they are seeking. While self employed people may be able to afford the repayments, they do not have the same kind of proof of their income. Therefore they will need a self certified mortgage UK to purchase a home.
Employed, but still in need of a self certified mortgage UK?
It is not just the self-employed who require a self certified mortgage UK. Anybody whose income is not set at the same amount each month could also be eligible. Whether the fluctuation in income is due to commission payments each month or a bonus paid on an annual basis, these type of borrowers could be best suited to a self certified mortgage UK. People who earn commission, for example car salespeople, or managers whose income varies according to a shop's sales turnover, are a good example. Others may be in receipt of an annual bonus, for example City workers or anybody who receives a bonus that makes up a significant chunk of their income.
Who else might benefit from a self certified mortgage UK?
The third main group of people who might need a self certified mortgage UK are those whose income comes from more than one source. You may work full-time, and be able to prove your salary from this employment, but have other sources of income you want to be taken into account when applying for a mortgage. For example you may have a second job, working at weekends or in the evenings. This work may be shift work on an irregular basis, or delivering and selling from catalogues, with the amount you earn varying each week or month. Or perhaps you have investments or an annuity from which you receive an income. Again, in order for a mortgage lender to take this income into account, you may have to apply for a self certified mortgage UK.
When applying for a self certified mortgage UK you will need to declare how much you expect to earn per year, and also supply information- if requested- from an accountant to show how much you have previously earned. That done, a self certified mortgage UK could be your key to home ownership.
