Self Certified Remortgages
Self Certified Remortgages | The Answer To No Proof Of Income?
As working patterns changes in the UK self certified remortgages are becoming more popular. So what do you need to know if you are considering self certified remortgages but you don't know all the facts?
What are they?
Remortgage is simply switching your deal to another, either with the same lender or a different one. You might do this for a number of reasons: because you are moving house and need a different sized mortgage; you want a better rate; you want a better service from your lender; or perhaps you want to consolidate your debts.
And self certified remortgages are no different, except that when you apply for the mortgage you do not need to prove your income. With self certified remortgages you state your income and that you can afford the monthly mortgage repayments - and the lender does not verify this, although it will do a credit check to see how clean your credit record is.
Who needs them?
A wide range of people are suitable for self certified remortgages. The first group are the self employed who many already have a self-cert mortgage product but want to remortgage for any of the reasons mentioned above. They would naturally consider self certified remortgages if their sources of income have not changed since the last time they took out a mortgage.
In addition are those people who may not be self employed but might have a couple of sources of income such as a part time job, a divorce settlement and some income from investments. Other suitable people for self certified remortgages are those with varying levels of income, so while they may be employed in one steady job, it could be commission based, such as a sales roles and they may find it hard to prove to a lender that they can maintain a certain level of commission in future years.
Added to this group are those who are on contract work or freelancers who cannot prove that they will earn a certain amount each year. So self certified remortgages suit all of these people and when they come to remortgaging they may want to borrow more than their existing mortgage, perhaps to move to a bigger house or to release some equity for home improvements at their current property.
What are the advantages?
The benefits of self certified remortgages are that you do not need to prove your income to the lender, so you can state what you earn and that you can afford a mortgage at a certain level. This could enable you to buy a more expensive property than you could otherwise get funding for if you went with a mainstream lender.
How can you get them?
There is a wide range of lenders offering self certified remortgages and literally hundreds of deals. In fact the choice could be overwhelming so it can be useful to consult a mortgage adviser if you want to find out more about self certified remortgages and which would be most suitable for you. An adviser will be able to trawl the market and find a deal that is competitively priced and appropriate to your needs and circumstances.
If you think you should be considering self certified remortgages when your current mortgage deal needs renewing, get in touch with an adviser for more information.
