Self cert mortgages are available to everyone, but in particular are useful for those who cannot prove their income or do not qualify for standard mortgages. You are not required to provide documentary evidence of your mortgage, but it is important that the information that you supply is as accurate as possible.
If you are applying for a self cert mortgage or a non status mortgage, then it is likely that you fall into one or more of the categories below.
• Paid by Commission or Bonuses
• New Start Up
• Paid mainly in Dividends
• Fluctuating Profits
• Self Employed
• Employed
• Non Status
• Bad Credit CCJs Remortgage
• Adverse Credit History
• Self employed and require a remortgage loan up to 90% of the property value
If you are interested in applying for a self cert mortgage (http://www.clickngomortgages.co.uk/self-certified-mortgage-deals.asp), then your lender will need to gleam as much financial information from you as possible. The more information that you are able to provide the more likely that you are to obtain a good deal and mortgage rate.
Self certification means that you self certify that you can make payments on your mortgage and because of this, there is often a higher rate applied as you are seen as a larger risk to lenders than someone who can substantiate their income.
If you are interested in obtaining a self cert mortgage, then the kind of information that you will need is as follows:
• Bank statements (Usually the last 6 months)
• Proof of any additional income (Invoices / Benefits / Pension / overseas rental income / sub contract vouchers / tips & gratuities)
• Tax returns two years (This can be used as evidence of a percentage of your income)
• Statements of assets (Savings Account Balances / Second Properties / Stocks & Shares / Assets)
• Proof of maintained rental commitments (A reference from your landlord)
• Companies house statement or SA302 self assessment tax return
• Your business licence
• Evidence of future lump sum payments (This could be inheritance or bonus schemes)
• Income & allowances paid in not sterling currency (Travel industry / Armed forces)
• Income gained from outsourcing and contract working in both the private and public sector i.e.: IT contractors
All of the information gathered is taken into account and considered when applying for a self cert mortgage, this is why it is imperative to supply as much information as possible.
There is a range of benefits attached to self cert mortgages and those who apply for them. If you are a first time buyer, this may also be a great way of securing your foothold on the property ladder. A self cert mortgage may also be helpful for those looking to remortgage or those who are moving house.
The range of self cert mortgages cover a wide selection of tracker, fixed, discounted and variable rates. Although the rate is often higher than that of a standard mortgage rate, they have come down quite a bit over the last 5 years and are now a lot more affordable.
If you are looking for a self cert mortgage, then it is well worth exploring the market and finding a broker who understands your needs and will do some of the work for you.
