Selfcert Mortgages
Five Things To Know About SelfCert Mortgages In 2009
The world of selfcert mortgages has changed completely over the last two years. Many of the lenders have left the market, and those that remain have become a lot more risk-adverse. Simply, it is harder to get a selfcert deal these days, no matter where you go or who gives you advice. Here are five facts about selfcert mortgages that you need to know now, because if you are looking to remortgage or even get a new deal from one of the remaining selfcert mortgages on the market, you are going to have to learn that things are very different to the market two years ago.
1. Selfcert mortgages don't require proof of income but do need a credit score
In the past, selfcert mortgages could be taken out by people who weren't able to produce payslips or work contracts; lenders offered selfcert mortgages by just taking your word on trust. Now you need accounts, letters from employers and a squeaky-clean credit score to even be considered. Lenders are not trustful anymore, so it's down to the borrower to prove their worth.
2. Selfcert mortgages are still suitable for a range of different people
Even today, anyone who can't prove their income should consider whether selfcert mortgages are for them. The most obvious example is self employed people. They might run their own business or just work for themselves as freelancers. Another classic example of people who opt for selfcert mortgages are those with more than one income stream. This could be because they have a second or even third job, or because their salaries are boosted by bonuses or commission.
3. Selfcert mortgages are available through mortgage broker-only lenders
No high street bank will offer a selfcert mortgage. They will not even offer a mortgage to someone unless they have at least a 15 or 20% deposit. They may not even lend to someone who has an overdraft, a credit card debt or a huge wage. It's very, very hard to get a high street bank to lend to you. So if you need any sort of specialist loan, you need to go through a mortgage adviser and that includes selfcert.
4. Selfcert mortgages are very limited
There are now only a handful of mortgage lenders who offer selfcert mortgages. Some offer fast track deals, which do not need a proof of income, but these deals are not selfcert. But although this part of the mortgage market is very limited, there are still deals and there are still options for those who cannot prove their income, albeit severely limited.
5. Selfcert mortgages are not the most competitive rates
Where once selfcert mortgages were value for money because you could self certify a larger wage, thus get a lower mortgage rate, nowadays this might not be the case. Selfcert borrowing is not the cheapest option - so if you think it is the right choice for you, a plan of spending, saving and consolidating must be put together. Self cert mortgages are still possible in 2009, it is just takes a lot of time, effort and hard work to get hold of them.
