Self Cert Mortgages Helping The Self Employed Get A Mortgage
Saturday, October 24th, 2009Direct Traffic asked:
If you are unable to prove your income, a self certified mortgage could be the mortgage option for you. Self certified mortgages have been created by mortgage lenders for those unable to prove their income in the traditional way because it is irregular and not a set amount each month. The self employed benefit most from this type of mortgage as they aren’t able to meet the normal lending criteria set by mortgage lenders
This type of mortgage is suited to the self-employed, and also freelancers, temporary workers, seasonal workers and those whose income is commission based.
The amount you can borrow is calculated on your own and your partner’s annual income however bonuses, commission, pensions and second incomes will also be taking into account. This can be of huge benefit to borrowers as a self cert mortgage can allow them to borrow enough to buy a home in today’s expensive housing market.
Mortgage lenders offer the self certification mortgage not just to the self employed but is also available to the employed too.
How do I prove my income?
Instead of the normal means of supplying bank statements, the mortgage lender will run a credit check on you and assess you based on that. They may ask for additional proof such as a landlord’s reference.
Is a Self Cert mortgage expensive?
Well yes they can be. You are certainly paying a premium for this type of mortgage when compared to traditional mortgages however this is a reflection of the higher risk to the mortgage lender.
You do have the same choice of mortgage types; first time buyer mortgage, buy to let and the interest rate options: fixed rate, variable rate, tracker rate and discount rate.
Mortgage lenders will allow you to borrow a similar amount to those in regular paid full employment. They will offer loans of up to 90% of the property’s value however this is the maximum. Plus with tightened lending criteria in the wake of the credit crunch your income will need to be good and be backed up with a credit file without defaults.
Airless Paint Sprayer
If you are unable to prove your income, a self certified mortgage could be the mortgage option for you. Self certified mortgages have been created by mortgage lenders for those unable to prove their income in the traditional way because it is irregular and not a set amount each month. The self employed benefit most from this type of mortgage as they aren’t able to meet the normal lending criteria set by mortgage lenders
This type of mortgage is suited to the self-employed, and also freelancers, temporary workers, seasonal workers and those whose income is commission based.
The amount you can borrow is calculated on your own and your partner’s annual income however bonuses, commission, pensions and second incomes will also be taking into account. This can be of huge benefit to borrowers as a self cert mortgage can allow them to borrow enough to buy a home in today’s expensive housing market.
Mortgage lenders offer the self certification mortgage not just to the self employed but is also available to the employed too.
How do I prove my income?
Instead of the normal means of supplying bank statements, the mortgage lender will run a credit check on you and assess you based on that. They may ask for additional proof such as a landlord’s reference.
Is a Self Cert mortgage expensive?
Well yes they can be. You are certainly paying a premium for this type of mortgage when compared to traditional mortgages however this is a reflection of the higher risk to the mortgage lender.
You do have the same choice of mortgage types; first time buyer mortgage, buy to let and the interest rate options: fixed rate, variable rate, tracker rate and discount rate.
Mortgage lenders will allow you to borrow a similar amount to those in regular paid full employment. They will offer loans of up to 90% of the property’s value however this is the maximum. Plus with tightened lending criteria in the wake of the credit crunch your income will need to be good and be backed up with a credit file without defaults.
Airless Paint Sprayer
