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Self Certification Mortgages

Both employed and self employed homeowners looking to remortgage will probably already have realized that there are many pitfalls. Most self employed people do not receive pay slips and are often paid in cash so they can rarely prove accurate current income levels. Additionally the last full years completed tax return does not require filing until almost 9 months after the normal year end so this information for mortgage lenders is usually deemed as out of date. This situation can make it very difficult for self employed applicants to get accepted by mortgage lenders. For this reason many lenders devised mortgages specifically for the self employed.

These mortgages known as self certificate mortgages are where income proof is not required however they are now rarely offered due to tighter regulation and lenders requesting firm income proof before allowing a mortgage to be approved. Another similar type of mortgage known as fast track is still available but also less widely offered. The difference with fast track is that income (subject to status) is not required in most cases however the lender reserves the right to request this data.

We can provide very competitive mortgage quotes on UK properties whether you live within the UK or abroad. We are a “Whole of Market” brokerage which means we have access to virtually all UK lenders. Many other brokers offer mortgages from a small selection of lenders known as a panel or even just a single lender. Being “Whole of Market” allows us to access the best possible rates without our clients needing to do the work.

Please either contact us by email of by calling one of the numbers above. If you would like a mortgage quote to find a cheaper mortgage than your current one then please fill in the form on the side of the page.

With a self certification mortgage the mortgage applicant must sign a declaration of their income. The lenders will allow a mortgage to be granted without any reference to an employer.

With little or no adverse credit, the interest rate can bear a small premium above normal rates. All mortgage types (Variable Rates, Fixed Rates, Capped, Discount Mortgages etc.) are available.

With a deposit typically in the region of 25% or a loan to asset ratio of around 75% some lenders will allow borrowers to self-certify their income without references or promises from an accountant.

Better rates are available to the self-employed if documentation can be provided to support past and expected income levels.

Due to much stronger regulation, fewer lenders are now providing self certification mortgages. Our mortgage brokers can provide you with advice concerning the best self certification mortgage. If you would simply like to learn more about how a self certification mortgage works, just give us a call.

So if you’re considering Equity Release your first move should be to do as much research into the products available as possible and seek advice. UK Property Finance offer a professional confidential service and can explain and research the best available option for you.

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Last Updated: Apr 11, 2019 @ 4:06 pm

UK Property Finance is Authorised by The Financial Conduct Authority (FCA)

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