Self Certification Mortgage

A Self Certification Mortgage is often referred to as a non-status mortgage (non-status Remortgage). Such mortgages are available to the self employed as well as the employed.

Self-certification is a simple way of detailing your income, as you are able to self declare your earnings. The lender will not necessarily insist on seeing audited accounts. Self Certification Mortgages for bad credit sufferers are also available in the open mortgage market.

Mortgage lenders usually require self-employed applicants to provide proof of two to three years financial accounts in order to ascertain their income.

This is how a self-certification loan "SHOULD" work, but there are still the odd occurrences whereby some lenders will need to see proof of income such as an accountant's certificate (a document signed by your accountant to say that your income is sufficient to service the loan requested).

Self Certification Mortgages often have higher interest rates applied, which are slightly higher than those on traditional mortgages. Higher interest rates reflect the extra risk and costs to the mortgage lender in providing a mortgage to someone on a Self certification basis.

The usual deposit required is approximately 15% - 25%. For those who are able to put down a substantial deposit, of say 25%, the rates of interest available will be lower. The minimum deposit for all self certification mortgages is 10% but normally only a handful of lenders offer a 89% self certification mortgage.

The borrower wishing to take a self certification mortgage is not limited on the availability of products for the mortgage - the usual types of mortgage are normally available.

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