Self-certification mortgages are intended for borrowers who cannot prove their income. Historically, persons who could not provide the necessary documentation were either offered a mortgage that was not large enough or were refused.
Persons who get bonuses and commissions, those who work on contract or are self-employed can apply for a self-certification mortgage. Generally, applicants are not required to prove their income but can state the amount they are likely to get. At the same time, some financial institutions require that applicants present a bank statement as to back up the application.
There are some advantages to getting a self-certification mortgage, one being that self-employed persons qualify for a mortgage loan when standard channels for financing may be closed to them. Some people cannot offer proof of income while others are unwilling to present the required documentation.
Seasonal workers do not have stable income throughout the year and fall in this category. Even if they are able to make payments, they may not have the required documentation to apply for a standard mortgage loan. Getting a self-certification mortgage is a good option in this case, and applicants just sign a declaration that they can afford to make repayments. The same goes for freelance contractors, sole traders, and other self-employed persons. Even if some of them earn more than salaried professionals, they may not have the required documentation to prove it.
Self-certification mortgages are a good choice for other categories of workers as well. Those who have different sources of income, such as part-time businesses, and persons who have several part-time jobs are likely applicants. Another category form those whose income is from investments or pensions. Workers whose annual bonus represents a substantial portion of their income and those paid on commission are also likely candidates. Temporary and agency staff and unsalaried company directors form another category.
Financial institutions that offer self-certification mortgages take more risk and hence, this mortgage type comes with a higher rate of interest. Persons who apply for a mortgage loan have to offer a larger down payment. The good news is that if the applicant puts down 25 percent, financial institutions may offer a better interest rate. This way, the mortgage loan will be a little more expensive compared to a standard mortgage.
Persons who want to apply for a self-certification mortgage can check with various financial establishments, including Abbey Bank, Lloyds, Barclays, ING Direct UK, First Direct, and many others. Given that self-certification mortgages are a special type of product, not all financial institutions offer them. Many lenders work through independent brokers who offer their products.
Borrowers can look into different types of self-certification mortgages. Applicants can choose from capped rate mortgages, tracker mortgages, variable rate mortgages, and fixed rate mortgages.
Persons who get bonuses and commissions, those who work on contract or are self-employed can apply for a self-certification mortgage. Generally, applicants are not required to prove their income but can state the amount they are likely to get. At the same time, some financial institutions require that applicants present a bank statement as to back up the application.
There are some advantages to getting a self-certification mortgage, one being that self-employed persons qualify for a mortgage loan when standard channels for financing may be closed to them. Some people cannot offer proof of income while others are unwilling to present the required documentation.
Seasonal workers do not have stable income throughout the year and fall in this category. Even if they are able to make payments, they may not have the required documentation to apply for a standard mortgage loan. Getting a self-certification mortgage is a good option in this case, and applicants just sign a declaration that they can afford to make repayments. The same goes for freelance contractors, sole traders, and other self-employed persons. Even if some of them earn more than salaried professionals, they may not have the required documentation to prove it.
Self-certification mortgages are a good choice for other categories of workers as well. Those who have different sources of income, such as part-time businesses, and persons who have several part-time jobs are likely applicants. Another category form those whose income is from investments or pensions. Workers whose annual bonus represents a substantial portion of their income and those paid on commission are also likely candidates. Temporary and agency staff and unsalaried company directors form another category.
Financial institutions that offer self-certification mortgages take more risk and hence, this mortgage type comes with a higher rate of interest. Persons who apply for a mortgage loan have to offer a larger down payment. The good news is that if the applicant puts down 25 percent, financial institutions may offer a better interest rate. This way, the mortgage loan will be a little more expensive compared to a standard mortgage.
Persons who want to apply for a self-certification mortgage can check with various financial establishments, including Abbey Bank, Lloyds, Barclays, ING Direct UK, First Direct, and many others. Given that self-certification mortgages are a special type of product, not all financial institutions offer them. Many lenders work through independent brokers who offer their products.
Borrowers can look into different types of self-certification mortgages. Applicants can choose from capped rate mortgages, tracker mortgages, variable rate mortgages, and fixed rate mortgages.
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