Self Certification Mortgage

Written by Jeremy Horelick
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The self certification mortgage is designed for those borrowers who lack sufficient documentation of their credit-worthiness. Employees of major corporations can easily track their earnings and present pay stubs to their potential lenders. But these lenders are unwilling to take as much risk with applicants who have bumped from job to job or made their living in, shall we say, more creative ways.

For entrepreneurs and the self-employed, a self cert mortgage is a great way to qualify for funds that cover up to 75 percent of your property's total worth. The balance is typically left to a deposit, though in some instances this balance can be as low as 15 percent. A self certification mortgage depends, however, on extensive proof of the applicant's ability to repay his or her loan. Said proof may come in the form of a solicitor's or accountant's note, as well as a high credit score and clean history.

Finding a Self Certification Mortgage

With over 150 different lending institutions in the UK, there are plenty of places to turn for a self cert mortgage loan. Many of these lenders will accept accounting books from your company's past three years if you are in fact self-employed. Others will go to the lengths described above, and even then only provide high-interest loans to offset their perceived risk.

You can search online for self cert mortgages by visiting the individual web sites of the institutions themselves. Here you'll find rate calculators that factor in your income, the term of your loan, and your other outstanding debts. If you'd rather have your data culled for you, visit an independent mortgage broker who can provide a list of self-cert providers at a single glance.

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