Self Certification Mortgage

What is a Self Certification Mortgage?

A self certification mortgage is useful for people that find it difficult to prove their income. This can be self employed, or those with a high amount of variable earnings. The principle behind a self certification mortgage is that you are able to self certify your income, and therefore the amount that you are able to pay back each month.

The main benefit of a self certification mortgage for the types of people outlined above is that in many cases, high street mortgage lenders will not offer mortgages to clients on variable incomes. The only solution in many cases is to go for a self certification mortgage.

The main downside of such a mortgage is that since you will not be able to approach many of the mainstream lenders, you might not get the best rates on the market. However, give the fact that up to 1 in 4 people do not fit standard lending criteria, the market is quite competitive.

A note of caution on self certification mortgages:
Self certification mortgages have become increasingly popular in recent years, especially given the rise in the housing market. However, you should always remember that you will be asked your income on the application. Just because you are in a self certification situation, you should only put down your actual income. To do anything else would not only be fraud, but could also mean that you are unable to afford your mortgage repayments, especially if mortgage rates rise in the future.

If an adviser tells you to lie on your application, this is fraud, and you could suffer severe penalties as a result.

To find out more about a self certification mortgage contact us.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.