Non Standard Mortgages - Self Certification
Self Certification Mortgages
Self-certification mortgages, also known as non-status
mortgages, have shot to popularity thanks largely to changing
work practices in the last couple of decades that have left
a large number of people on short term or part time contracts,
or dependent on bonuses for a sizeable portion of their
income.
Self-certification mortgages are for people whose income
is difficult to assess using the standard methods adopted
by most conventional mortgage lenders.
Bonuses, commission and seasonal work can cause income
to vary over time or be difficult to guarantee and this
may not be considered acceptable in order to get a mainstream
loan. Many customers who go on to be excellent mortgage
customers with specialist lenders routinely fail credit
scoring processes with mainstream lenders. While most self-certification
mortgages are also available to the self-employed, they
are not exclusive to them and some of the following groups
also opt for this type of product:
Self-certification is the process by which the amount that
a customer borrows is based on what they claim is their
income as stated in a signed declaration in the application
form, but where they don't have to prove it on the basis
of their accounts. There is no need to supply accounts,
bank statements or any other proof of income. Instead the
lender will take up bank and lender references, credit checks,
solicitors' confirmation of previous ownership and landlord's
reference.
Sometimes it will be possible for people from within the
various groups mentioned above to obtain a normal mortgage.
If you have a good credit history, can show a consistent
level of regular income over a number of years, have the
bank statements or business accounts to prove it and can
show that you are not such a high risk, then you should
be able to get a conventional mortgage deal at a conventional
rate of interest.
