Self Certify Mortgages
Self Certify Mortgages | Facts on 2009 Self Cert Deals
There are not many self certify mortgages in the UK market
Since the credit crunch hit the UK in August 2007, most of the providers of self certify mortgages have had to leave the UK mortgage market. The deals are riskier, cost more to create and have a greater potential to default: so lenders have just said no. Many of the providers were US investment banks, which have since either gone bankrupt or have been bought by other banks – the same goes for the lenders of self certify mortgages in the UK.
The remaining self certify mortgages are expensive
Because there are not as many lenders who will lend self certify mortgages, those that do will charge a big premium. The only way to really offset risk in 2009 is to charge more fees, a larger rate and demand a much greater loan to value ration. So if you are looking for self certify mortgages in 2009, be ready to have to put down more money and shell out more each month. Even the best mortgage broker in the world will not be able to find a cheap deal for self certify mortgages, but they will be able to find one that will work.
Many people will be turned down for self certify mortgages
Not only have lenders of self certify mortgages reduced their ranges of mortgages drastically; they have also tightened up their lending criteria a lot. So where once someone with one or two misdemeanours on their credit score may have been accepted, now the computer will certainly say no. They have also increased the income rations at which they will lend self certify mortgages: so simply you need to be making more money to be accepted for self cert deal.
All is not lost for those who need self certify mortgages
This might be hard reading if you thought you would be able to instantly find a great deal amongst the remaining self certify mortgages out there, but there is still hope. For someone who is earning well, who has saved earnestly and who has not got into unnecessary debt there is still a lot of lenders of self certify mortgages who will say yes. They don’t want to have exposure to risk, but the lenders need to make money to get out of this crisis. So with some good planning, some great advice and some hard work you can still get hold of one of the UK’s remaining self certify mortgages deals.
