If you are self-employed or currently working on a short-term contract, with a sound financial creditability, it is often quite difficult to prove a level of earnings to the satisfaction of a lender.
A handful of mortgage lenders have recognised this and are prepared to welcome such customers in these tricky situations. These are the specialist lenders who understand the needs of the self-employed borrower and continually look to improve the terms and features of their mortgage products to meet the needs of the market.
Self-certification is a simple way of detailing your income as you simply self declare what you earn and the lender will not insist on seeing audited accounts.
There are still some lenders who will need you to prove your income in other ways, such as an accountant's certificate. This is a document signed by your accountant to say that your income is sufficient to service the loan requested. You may also be asked to produce your business bank statements for a set period so the lender can look at the gross income you have received.
Self Certification is a term used by lenders for a way to enable the employed and the self employed to verify that they can afford the repayments of a mortgage.
Self Certification may be suitable if:
You are self-employed:
No requirement for the lender to contact your accountant for confirmation of income
You have less than three years accounts
You prepare your own accounts
You are employed:
A large portion of your income is non-guaranteed (overtime, bonus or commission)
You are on a fixed term contract
You have more than one job
You have more than one source of income
The overall cost for comparison is 7.6% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
Mortgage Saints Ltd is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage
