Selfcert Mortgage
Who Needs A Selfcert Mortgage?
It might be that you are not self-employed, yet your basic salary still does not represent your total earnings, in which case a selfcert mortgage will still be suitable. For example, you could receive dividends through shares in a company, large annual bonuses through a banking job in the city, or a significant part of your salary could be made up of commission, as is the case with an estate agent, recruitment consultant or sales executive. A selfcert mortgage would also be suitable if you derive income from more than job or earn extra cash from home doing anything from stuffing envelopes or to having a local ironing service.
Why is a selfcert mortgage so important still?
In fact, with the average house price now at £150,946 according to statistics from Nationwide Building Society (March 2009), borrowers need all the borrowing capacity possible, whether its to make the first rung of the property ladder or climb up to the next one. A selfcert mortgage enables borrowers to use every scrap of their earnings, regardless of where from, in order to achieve this.
How does a selfcert mortgage differ to a regular mortgage?
Since all mortgages were regulated by the Financial Services Authority in November 2004, self cert lenders will want you to declare your income - or additional income - in order to qualify for a selfcert mortgage. Although a selfcert mortgage comes with greater flexibility in terms of what it will lend, providers of the products will still balance their risk by requiring a more significant chunk of deposit than would apply to a standard loan; a selfcert mortgage usually requires a minimum of 25 per cent of the property value.
How easy is it to get a self cert mortgage?
Once borrowers are familiar with the criteria, getting a selfcert mortgage is quite easy - by using a specialist selfcert mortgage broker to guide you through the intricacies of each lender, what it offers and to whom, will usually result in saving time and money.
Due to increasing consumer demand and more flexible working patterns in the UK, the number of borrowers looking for a selfcert mortgage has soared. But thanks to the credit crunch, the selfcert mortgage market has diminished considerably. But that is not to say it is impossible to get a deal if you cannot prove all you income. It just means you need a mortgage adviser more than ever to make sure you can secure one of the few remaining deals left out on the market.
