Self Certification Mortgages (Is it for you)

A self certification mortgage is often referred to as a non-status mortgage, and is available to both the employed, self employed, first time buyers and those with a bad credit history alike. They have become very popular in recent years, as working environments and practices have moved away from the more conventional 9 to 5, and where monthly income may come from several different sources. A self certified mortgage is specifically designed for people whose income is difficult to assess using the standard underwriting criteria used by most mortgage lenders.

Self certification mortgages allow you to declare your income without having to provide the documentary evidence usually required when applying for a mortgage.

As well as the self employed and employed, a self certification mortgage may also be applicable to other categories of employment. These could include:

With self certification mortgages there is no need to supply accounts, bank statements, payslip's or any other proof of income. The lenders do howerver reserve the right to check if they feel it necessary. The lender will conduct a credit check and credit score, and in some cases may apply for a lender reference or landlord's reference.

Interest rates are slighly higher with self certification mortgages due to the fact the risk is higher. The higher the deposit the more lenders you have access to and the greater amount you can borrow.